Builders Merchants

2020 forecasts upgraded (again); Grafton remains top pick

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

Ratings

Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
Grafton Group OUTPERFORM 07/10/20 Neutral 21/05/20 896p
Howden Joinery NEUTRAL 26/09/19 Outperform 29/01/15 690p
Travis Perkins plc NEUTRAL 28/05/20 Underperform 01/07/16 1394p

DAVY VIEW

We are upgrading 2020 forecasts for Grafton, Howdens and Travis Perkins. Recent updates confirmed a strong end to the year for building distribution/product businesses in the UK and Ireland. Companies with residential RMI exposure in particular enjoyed a significant recovery in trading in the second half of last year. Despite the continuing uncertainties, the three companies start the year in good shape, supported by very healthy balance sheets. Of this sub-sector, Grafton remains our preferred option.

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Jan 19 2021, 06:30 GMT

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