Travis Perkins plc (LON:TPK) Receives Average Rating of "Hold" from Analysts

Key Points

• Analysts have a consensus “Hold” rating on Travis Perkins, with two sells, one hold and three buys. The average 12-month price target is GBX 613.83, below the recent trading price of GBX 666.50.
• First-half profit rose as price increases, cost reductions and operational improvements boosted margins and strengthened the balance sheet, although revenue and construction-market demand remained weak.
• Broker views remain divided: Peel Hunt maintained a GBX 660 buy target, while Jefferies and Deutsche Bank cited valuation and demand concerns with underperform or sell ratings. The company still has a negative net margin and return on equity, indicating its turnaround is incomplete.

Travis Perkins plc (LON:TPK - Get Free Report) has been given a consensus recommendation of "Hold" by the six ratings firms that are covering the firm, MarketBeat.com reports. Two analysts have rated the stock with a sell recommendation, one has issued a hold recommendation and three have assigned a buy recommendation to the company. The average 12-month price target among brokers that have issued ratings on the stock in the last year is GBX 613.83.

Several analysts have recently weighed in on the stock. Berenberg Bank lifted 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. Peel Hunt reaffirmed a "buy" rating and set a GBX 660 price target on shares of Travis Perkins in a research report on Tuesday. Jefferies Financial Group reissued an "underperform" rating and issued a GBX 443 price objective on shares of Travis Perkins in a research report on Wednesday. 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 report on Wednesday. Finally, JPMorgan Chase & Co. reduced their price target on Travis Perkins from GBX 680 to GBX 630 and set an "overweight" rating on the stock in a research report on Tuesday, May 19th.

Travis Perkins News Roundup

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

• Positive Sentiment: First-half profit increased as price increases, cost reductions and operational improvements more than offset soft construction-market demand. Management also highlighted stronger margins and a healthier balance sheet. UK's Travis Perkins posts half-year profit rise on price hikes
• Positive Sentiment: The results suggest the turnaround is progressing, with margin gains and cost savings helping Travis Perkins navigate lower revenue. However, the recovery in its merchanting operations remains delayed. Travis Perkins H1 revenues drop but shares rally on turnaround signs
• Positive Sentiment: Peel Hunt reaffirmed its “buy” rating and set a GBX 660 price target, broadly reflecting confidence in the company’s operational improvements. Peel Hunt broker rating
• Neutral Sentiment: Berenberg raised its price target from GBX 580 to GBX 650 but retained a “hold” rating, indicating that much of the recovery may already be reflected in the valuation. Berenberg broker rating
• Negative Sentiment: Deutsche Bank increased its target from GBX 470 to GBX 550 but moved to a “sell” rating, while Jefferies reaffirmed “underperform” with a GBX 443 target. Their views point to concerns about valuation, still-muted demand and the sustainability of margin gains. Broker rating updates
• Negative Sentiment: Revenue declined and the company continues to report a negative net margin and negative return on equity, underscoring that the turnaround is incomplete despite the first-half profit improvement.

Travis Perkins Price Performance

Shares of LON TPK traded down GBX 12 during trading on Wednesday, hitting GBX 666.50. The company had a trading volume of 189,368,641 shares, compared to its average volume of 4,344,806. Travis Perkins has a fifty-two week low of GBX 493.40 and a fifty-two week high of GBX 723.50. The company has a quick ratio of 0.84, a current ratio of 1.72 and a debt-to-equity ratio of 59.00. The stock has a fifty day simple moving average of GBX 553.41 and a two-hundred day simple moving average of GBX 584.87. The firm has a market capitalization of £1.41 billion, a price-to-earnings ratio of -8.00, a price-to-earnings-growth ratio of 6.44 and a beta of 1.28.

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

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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