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(Sharecast News) - Analysts at Berenberg lowered their target price on builders' merchant and home improvement retailer Travis Perkins from 880.p to 800.0p on Thursday, stating times were "still tough" for the company.
Berenberg stated it struggles to get excited about Travis Perkins given the continued pressures it faces on both volumes and margins in 2024, and also said it thinks the business' elevated financial leverage "raises a few concerns".
However, it did note the group's proactivity in reducing costs and optimising cash flow through a series of differing initiatives that will leave it better positioned to benefit from the recovery when it comes.
"Considering these factors and the current valuation we keep our 'hold' rating but lower our price target to 800.0p as we cut 2024-26 EBITA forecasts by 10% following the FY 2023 results," said Berenberg.
The German bank added that Travis Perkins trades on 16x 2024 earnings per share, falling to 12x in 2025.
Reporting by Iain Gilbert at Sharecast.com
