DAVY VIEW

The subdued reaction to the recent Howdens trading statement looks harsh. It is true the stock has been trading at a valuation premium to its historic range, but the group’s performance once again fully justifies the lofty rating. It is also likely that this year is “as good as it gets”, but even still Howdens remains extremely well positioned in every respect. An example of this is the group’s net cash position, which should result in the commencement of a fresh share buyback early next year.