Shares in Travis Perkins (LSE:TPK) surged 15%, or 88p, to 661p after interim results prompted analysts to point to evidence that the builders' merchant is turning itself around.
Panmure Liberum reiterated a 'buy' rating and 740p price target, arguing the numbers showed the benefits of self-help and disciplined management.
Group revenue fell 1.8%, and 0.7% on a like-for-like basis, with a 3.2% volume decline offset by the return of price inflation at 2.5%.
Adjusted operating profit rose 6.3%, though it was flat once property profits were stripped out.
Panmure put that underlying figure at £62 million, unchanged year on year, and left its 2026 forecasts untouched.
Peel Hunt said underlying earnings per share grew 13% to 15.1p, with net cash of £55 million before leases as the business continued to release working capital.
Merchanting like-for-like sales fell 1.2%, with a 2.3% drop in the first quarter offset by a flat second quarter.
Operating profit in the division dropped 5% to £60 million as a stronger gross margin failed to cover higher operating costs.
Panmure noted general merchanting volumes were down 3.9%, underlining how much of the profit performance is coming from margin expansion and cost control rather than demand.
Toolstation grew like-for-like sales 1.4%, with volumes up 0.6%. UK profitability at the trade counter chain rose around 5% to £22 million, while European losses held at roughly £7 million.
The company has begun multiple discussions with interested parties over a disposal of the European business.
Management expects second half trading to resemble the first. Peel said that implied limited changes to consensus-adjusted operating profit of £124 million, against its own forecast of £115 million, and that it did not expect material changes to the numbers.
The broker described the UK backdrop as extremely challenging, with depressed volumes and continued cost pressure, and flagged price inflation in oil derivatives as a key variable for the second half.
Even so, it said the group was showing encouraging signs on the turnaround.
Peel remains optimistic the business can deliver a successful operational recovery in a weaker market, building on a rebuilt share position and a strong balance sheet.
Its valuation work was published with the shares at 573p, at which level they traded on 16 times 2027 earnings and six times enterprise value to earnings before interest, tax, depreciation and amortisation, with a 2.5% dividend yield.
