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Jan 16 2023, 07:00 GMT
Ratings and price correct at time of issue
|Company||Rating||Date||Previous Rating||Date||Closing Price|
|Travis Perkins plc||NEUTRAL||28/05/20||Underperform||01/07/16||1021p|
2022 was, to put it mildly, a year best forgotten for our building materials lightside coverage list. The steep drop in equity values essentially pre-empts this year’s operational hurdles. Our universe screens very well from a valuation perspective should existing forecasts hold up. The jury is out on this. Our instinct is that, notwithstanding the near-term cyclical downturn risk, investors should focus on those businesses best placed to snap back quickly, that can take advantage of any industry dislocation and that offer structurally through-the-cycle advantaged propositions. Fasten seatbelts, but we gravitate towards the established quality of Howdens and Kingspan. Deep value is another consideration, with Grafton and Tyman standing out.