Travis Perkins (LON:TPK) Given New GBX 650 Price Target at Berenberg Bank

Key Points

• Berenberg Bank raised Travis Perkins’ price target to GBX 650 from GBX 580 while maintaining a “Hold” rating; the new target implies 4.41% downside from the previous close.
• Analyst views remain mixed, with three Buy ratings, one Hold and one Sell. The consensus target is GBX 630.80, including Peel Hunt’s reiterated Buy rating and GBX 660 target.
• Travis Perkins shares opened at GBX 680, up 0.2%, while the company reported quarterly EPS of GBX 15.10. Although profit and the balance sheet are improving, negative margins and return on equity—and declining revenue in its core merchanting business—show the recovery remains incomplete.

Travis Perkins (LON:TPK - Get Free Report) had its target price raised by analysts at Berenberg Bank from GBX 580 to GBX 650 in a report released on Wednesday,Digital Look reports. The firm presently has a "hold" rating on the stock. Berenberg Bank's price target indicates a potential downside of 4.41% from the company's previous close.

TPK has been the topic of a number of other reports. Jefferies Financial Group decreased their price target on Travis Perkins from GBX 507 to GBX 464 and set an "underperform" rating on the stock in a research note on Monday, April 20th. JPMorgan Chase & Co. cut their target price on shares of Travis Perkins from GBX 680 to GBX 630 and set an "overweight" rating on the stock in a report on Tuesday, May 19th. Finally, Peel Hunt reaffirmed a "buy" rating and issued a GBX 660 target price on shares of Travis Perkins in a research note on Tuesday. Three analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of GBX 630.80.

Travis Perkins Stock Up 0.2%

Shares of LON:TPK opened at GBX 680 on Wednesday. The stock's 50-day moving average price is GBX 553.41 and its 200-day moving average price is GBX 584.87. Travis Perkins has a 12-month low of GBX 493.40 and a 12-month high of GBX 723.50. The stock has a market capitalization of £1.44 billion, a P/E ratio of -8.16, a price-to-earnings-growth ratio of 6.44 and a beta of 1.28. The company has a current ratio of 1.72, a quick ratio of 0.84 and a debt-to-equity ratio of 59.00.

Travis Perkins (LON:TPK - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported GBX 15.10 earnings per share for the quarter. Travis Perkins had a negative return on equity of 9.35% and a negative net margin of 3.86%. On average, equities analysts anticipate that Travis Perkins will post 59.251837 earnings per share for the current year.

More Travis Perkins News

Here are the key news stories impacting Travis Perkins this week:

• Positive Sentiment: First-half profit increased, supported by price increases, cost reductions and operational improvements. Management also reported a stronger balance sheet, improving confidence in the company’s recovery plan. Reuters article
• Positive Sentiment: The results were viewed as signs that Travis Perkins is “moving in the right direction,” with margin and profitability progress helping offset difficult market conditions. Investors’ Chronicle article
• Positive Sentiment: Peel Hunt reaffirmed its Buy rating and set a GBX 660 price target, indicating continued broker support for the turnaround story. Sharecast broker views
• Neutral Sentiment: The company reported quarterly EPS of GBX 15.10. However, its net margin and return on equity remained negative, showing that the recovery is still incomplete. MarketBeat earnings report
• Negative Sentiment: First-half revenue declined and the expected recovery in the core merchanting business has yet to materialize, reflecting continued softness in construction activity. London South East article

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source