DAVY VIEW

Travis Perkins is likely to continue to stimulate considerable debate for the foreseeable future. Take your pick: a vigorous recovery play or further disappointment. The bull case is the scope for a revitalised business with very meaningful earnings renewal as mistakes of the past are rectified. However, amongst other things, greater clarity on the group’s future leadership is a pre-condition for a more positive stance. Hence our view remains that it is too early to have conviction in this thesis and that the stock remains at the riskier end of the risk-reward spectrum.