DAVY VIEW

We are upgrading our Howdens recommendation to ‘Outperform’ and view 1000p as a fair price target. Our 2022 profit estimates increase by 16% plus there is a credible argument that the medium-term opportunity set for the group has widened. More specifically, there is an increase in the potential UK depot network (providing a pathway for many more years of organic growth), greater conviction in relation to the European investment and the scope to gain share in parts of the UK market where Howdens is under-represented (work surfaces and the higher end segment).