Travis Perkins (LON:TPK) Given "Underperform" Rating at Jefferies Financial Group

Key Points

• Jefferies reaffirmed an “Underperform” rating on Travis Perkins and set a GBX 453 price target, implying approximately 20% downside from the stock’s GBX 566.50 trading price.
• Analyst opinion remains mixed: three firms rate the shares Buy, one Hold, and two Sell, producing a consensus “Hold” rating and average price target of GBX 628.83.
• Travis Perkins reported quarterly EPS of GBX 15.10, while profitability remained weak with a negative net margin of 3.81% and negative return on equity of 9.63%. An insider also purchased 1,483 shares at GBX 669 each.

Travis Perkins (LON:TPK - Get Free Report)'s stock had its "underperform" rating reissued by Jefferies Financial Group in a report released on Tuesday, Digital Look reports. They presently have a GBX 453 price target on the stock. Jefferies Financial Group's target price suggests a potential downside of 20.04% from the company's current price.

Several other research firms have also commented on TPK. Berenberg Bank increased their target price on shares of Travis Perkins from GBX 580 to GBX 650 and gave the company a "hold" rating in a report on Wednesday, August 5th. Peel Hunt reissued a "buy" rating and issued a GBX 660 price target on shares of Travis Perkins in a research note on Tuesday, August 4th. JPMorgan Chase & Co. upped their price target on shares of Travis Perkins from GBX 630 to GBX 710 and gave the company an "overweight" rating in a research report on Friday, August 7th. Finally, Deutsche Bank Aktiengesellschaft raised their price objective on Travis Perkins from GBX 470 to GBX 550 and gave the company a "sell" rating in a research note on Wednesday, August 5th. Three analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, Travis Perkins presently has an average rating of "Hold" and a consensus price target of GBX 628.83.

Travis Perkins Price Performance

LON:TPK traded up GBX 4 during mid-day trading on Tuesday, reaching GBX 566.50. The stock had a trading volume of 1,347,714 shares, compared to its average volume of 2,577,474. The stock has a market capitalization of £1.20 billion, a P/E ratio of -6.94, a P/E/G ratio of 6.44 and a beta of 1.30. The firm has a 50 day moving average price of GBX 617.86 and a two-hundred day moving average price of GBX 574.08. The company has a debt-to-equity ratio of 56.92, a quick ratio of 0.84 and a current ratio of 1.66. Travis Perkins has a one year low of GBX 493.40 and a one year high of GBX 723.50.

Travis Perkins (LON:TPK - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported GBX 15.10 EPS for the quarter. Travis Perkins had a negative net margin of 3.81% and a negative return on equity of 9.63%. As a group, analysts expect that Travis Perkins will post 59.25 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Jeremy (Jez) Maiden acquired 1,483 shares of the company's stock in a transaction dated Thursday, August 6th. The stock was purchased at an average price of GBX 669 per share, with a total value of £9,921.27. Insiders own 0.79% of the company's stock.

About Travis Perkins

Travis Perkins plc engages in distribution of building material products in the United Kingdom. It operates through Merchanting and Toolstation segments. The company offers tools and building supplies. It also distributes pipeline products, as well as supplies managed services, and commercial and industrial heating and cooling solutions. In addition, the company provides in specialist civils and drainage solutions; and air-conditioning and refrigeration products and heat pumps. Further, it provides insulation and interior building products to interior building specialists, contractors, and builders; and kitchens and joinery products.

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