Travis Perkins boosted by Deutsche Bank upgrade

Travis Perkins rallied after Deutsche Bank upgraded the stock to ‘buy’ from ‘hold’ and lifted the price target to 2,234p from 1,991p.

It said that as a building materials supplier with pure UK exposure, Travis Perkins is leveraged to a resilient economy against a backdrop of global growth concerns.

But the bank said the investment case was far more predicated on company-specific factors.

It noted that Travis Perkins launched a five-year strategic plan in 2013 which it believes offers scope for the company to exceed top-line guidance and deliver a steadily-improving margin and return on capital employed.

“However, with 2015 marking only the second year of implementation of the plan, we believe most benefits are yet to come,” DB said.

At 1540 GMT, Travis Perkins shares were up 2.1% at 1,956.10p.