Shares in Travis Perkins (LSE:TPK) PLC rebounded off their early lows to trade sideways mid-afternoon.
The builders’ merchant cited the recent round of rate rises as hitting the new build and home improvement market, key to the company’s success.
Broker Liberum made this observation: “The disappointment on residential RMI [repair, maintenance and improvement] appears to be the absence of a pick-up in sales despite softening comps.
“It is surprising that Toolstation is on track and General Merchanting behind, perhaps suggesting that large projects are worst impacted by more uncertainty.”
Sticking with its ‘hold’ recommendation, Liberum cut its price target for the stock to 840p a share from 900p (current price 811p). Regional broker Shore Capital is a ‘seller’ at current levels with a target of 809p.
“Our forecasts are under review,” said Shore.
“We remain fundamentally concerned about growing online competition in general merchanting and cannibalisation between the Merchanting and Toolstation segments.”
Mid-afternoon, the stock was up 2.4p at 811p.