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Nov 2 2023, 14:30 GMT
Following the Howdens update we now forecast pre-tax profit of £333m for this year, a reduction of 5%. We also believe it is prudent to reset expectations for next year. Accordingly, our 2024 pre-tax profit forecast has been lowered by 11% to £355m. But with the stock down around 15% since the start of October, the Howdens valuation is by no means stretched. We view the current softness in trading as a normal cyclical blip and retain full confidence in the Howdens operating model and investment case.