RBC Capital downgrades Howden Joinery to ‘sector perform’

RBC Capital Markets downgraded Howden Joinery on Tuesday to ‘sector perform’ from ‘outperform’ to reflect limited implied upside.

"Howden has continued to take share in what remains a challenging market," the bank said.

"We think Howden is well positioned heading into peak Autumn trading (P21) followed by an expected market recovery in 2025e.

"However, we think this is now largely expected with shares trading on a 2025 estimated price-to-earnings of over 17x versus a long-term average of circa 16x."

RBC lifted its price target on the shares to 980p from 920p, reflecting a higher mid-term margin.