RBC starts Kingspan at 'outperform' on growth prospects, sees few catalysts for Rockwool

Rockwool A/S

25/03/2026 12:24

** RBC initiates building materials supplier Kingspan KSP.I at "outperform" on datacentre-driven growth, while saying insulation manufacturer Rockwool ROCK.CO lacks catalysts, starting it at "sector perform"

** Kingspan's organic growth will outpace peers driven by its datacentre-exposed Advanced Building Systems unit and U.S. roofing market share gains, RBC says

** The core insulated panels division is well-placed for growth as European non-residential construction activity nears trough levels and demand improves, it adds

** The stock's valuation, trading below historical averages, "appears undervalued relative to its growth profile", RBC says

** Conversely, Rockwool faces limited upside to estimates and margin headwinds from falling EU carbon credit allowances in 2026, the broker says

** It also notes U.S. uncertainty following the abolishment of key renovation tax credits

** While tightening energy-efficiency and building code regulations support Rockwool's long-term outlook, RBC warns that "changes to insulation type and supplier are not a 'given', and could take longer than expected"

(Reporting by Marta Frackowiak)

((marta.frackowiak@thomsonreuters.com))