Builders Merchants

2019 results preview: a turning point in the UK?

  • Sectors : Builders Merchants
  • Companies : Ferguson | SIG plc | Grafton Group | Kingfisher | Travis Perkins plc | Howden Joinery

Ratings

Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
Ferguson NEUTRAL 10/11/17 N/A N/A 7598.0p
Grafton Group OUTPERFORM 15/12/15 Neutral 07/09/15 990p
Howden Joinery NEUTRAL 26/09/19 Outperform 29/01/15 733p
Kingfisher NEUTRAL 20/08/18 Outperform 02/10/17 222p
SIG plc NEUTRAL 01/07/16 Outperform 15/12/15 89.8p
Travis Perkins plc UNDERPERFORM 01/07/16 Neutral 20/10/14 1720p

DAVY VIEW

Upcoming results from the leading UK building distribution businesses should confirm expectations; it will be outlook commentary that will really grab attention. There has been a discernible uptick in UK housing-related sentiment indicators following the general election. This potentially leaves current 2020 consensus expectations undercooked, although it may take time to filter through to actual estimates. Above-average forward valuation multiples arguably already anticipate this, particularly in the case of Howdens, and are likely to limit further near-term upside.

Download full report with analyst certification and important disclosures

Feb 19 2020, 06:45 GMT

Download