RBC Capital trims Travis Perkins price target

RBC Capital Markets cut its price target on Travis Perkins on Monday to 1,200p from 1,250p.

The bank said it had brought forecasts down for the trading update and now forecasts 2023 profits broadly in line with guidance and 2024 profits broadly in line with its prior 2023E number, "so effectively pushing out a year".

"Whilst the UK macro remains uncertain, we continue to see significant value in the group on a longer term basis and believe structural drivers remain robust," it said.

RBC rates the shares at ‘outperform’.

On Friday, Travis Perkins warned on profits as higher interest rates and weaker consumer confidence weighed heavily on house building.

The builders' merchant said it had "not seen the anticipated easing of market conditions in the second quarter to date".