Berenberg raises target price on Travis Perkins

Analysts at Berenberg raised their target price on builders' merchant Travis Perkins from 1,430.0p to 1,500.0p on Tuesday, stating the group's third-quarter results had highlighted the strength of renovation, maintenance and improvement sector's recovery.

Berenberg pointed out that like-for-like sales were up 3.9% in the third quarter, leading Travis Perkins to raise guidance to the upper half of current estimates for 2020 as a whole.

"We believe the group is well placed to at least achieve its current guidance, with risk to the upside," said the analysts.

The German bank stated that while the risk of further lockdowns would weigh on sentiment, it believes TP's new guidance for 2020 is "very achievable" - especially given exit rates in September.

Looking further ahead, Berenberg stated it also expect Travis Perkins to be a beneficiary of UK government stimulus, as well as its own restructuring.

Berenberg also reiterated its 'buy' rating on the firm.