Barclays backs Rockwool, cuts Kingspan on valuation and strategy risks

Rockwool A/S

09/10/2025 12:50

** Barclays cuts Irish construction company Kingspan KSP.I to "underweight" from "equal-weight" and raises Danish stone-wool manufacturer Rockwool ROCKb.CO to "overweight" from "equal-weight", saying it sees "clear disconnects" in their valuations

** The broker cuts Kingspan's PT by 18% to EUR 70, saying the valuation already reflects success in U.S. roofing and data centres, while ignoring market share and execution risks

** A sum-of-the-parts analysis on Kingspan "creates earnings risk instead due to bullish assumptions", and splitting the company could lead to operational inefficiencies, the brokerage adds

** In contrast, Barclays raises Rockwool's PT by 11% to DKK 300, saying the stock has "deep value" as its stone wool insulation gains market share, supporting targeted capacity expansion

** Rockwool's "future initiatives could add more than EUR 1 billion of enterprise value (EV) midterm", the broker adds, highlighting the company's favourable track record on recent capacity additions and returns

(Reporting by Marta Frąckowiak)

((marta.frackowiak@thomsonreuters.com))