Davy Morning Equity Briefing
Apr 28, 2026
Travis Perkins plc
Trading conditions remain challenging
Recent events have only underlined that any near-term progress by Travis Perkins will be achieved thanks to internal initiatives. Organic revenues fell in Q1 due to volume weakness in the core merchanting operation. For those willing to back the group on a medium-term basis, support can be found in an EV/sales multiple at historic lows.
Howden Joinery
Still early in the year but on track to meet expectations
Howdens has enjoyed a steady start to 2026 with underlying same depot revenues in the core UK business up 2.6% year-on-year. We expect limited changes to forecasts with much to play for given Howdens generates circa 70% of full year profits in H2. The group, as ever, is well placed and we believe it is reasonably valued at present on a 2026 P/E multiple of around 16.5x.
Taylor Wimpey plc
Build cost inflation accelerating
Higher build cost inflation and lower pricing in Taylor Wimpey’s order book will work to drag down the group margin. Weakening affordability has the potential to bring down the net private sales rate excluding bulk deals. Overall, the business is facing a difficult operating environment.
Norwegian Air
Program X reducing winter losses; Iran war updates
Norwegian Air has reported an operating loss (EBIT) of NOK220m for Q1 (consensus operating loss NOK954m). Reduced capacity (ASKs) -6%, higher load factors and yield led to unit revenues up 13% with limited cost inflation (unit cost ex-fuel +2%) – driving the consensus beat and significant improvement in winter losses. Going forward, ASKs are expected to be +5% in Q2 and +3% for the full year. The company is 45% hedged for jet fuel for the year, leaving it partially exposed to current elevated jet price levels. While Norwegian has said that it sees strong demand for leisure routes and has increased fares to compensate, we do not expect all the jet fuel price increase to be recovered and will revise our estimates accordingly. Consensus FY26 EBIT is NOK2784m (Davy: NOK3026m).
Kenmare
Model update plus balance sheet and asset base review
We have updated our forecasts to reflect lower price assumptions. Leverage is low in historical terms, and there is scope to further monetise working capital. Reserves and resources showed good growth in 2025. The asset base is materially undervalued. Due to near-term macro uncertainties, we lower our price target to £5.50.
