TRG | The Bottom Line – 9/29

CRH earlier this week successfully transitioned to the U.S. stock exchange (NYSE) from the London Stock Exchange (LSE), and in conjunction with this event, hosted an investor day in NYC. In our opinion, CRH’s investor day was an opportunity was an education ramp for U.S. investors and analysts alike. While CRH has well-publicized its shift to the NYSE from the LSE, there remains a gap in understanding the range of products and services with U.S. investors. For being a well-sized company – $40B market cap – it is still surprising how CRH has remained under the radar screen. TRG saw this opportunity earlier this year, informed by our prior experience with Ferguson (FERG), another giant European-based company deriving the majority of its revenues in the U.S. market that shifted from the LSE to the NYSE. TRG initiated coverage on CRH in early June on the thesis of a company benefiting from several key secular trends, including 1) reshoring/near shoring; 2) structural U.S. population shift to “smile states”; 3) meaningful increased investment in environmental matters; and 4) passage of significant U.S. and state funding initiatives supporting a 5+ year runway for infrastructure and private construction projects. How did the stock perform on the first day trading on the NYSE? The stock outperformed the market, as CRH traded up ~5% vs. an essentially flat S&P 500.