RBC Capital cuts Travis Perkins target price after Toolstation miss

"We adjust forecasts to reflect the H1 Toolstation miss and higher losses expected for the FY in Europe," the bank said.

"Our EBITA forecasts come down 6% for this year and 2% for next. Our forecasts for Merchanting are largely unchanged, whilst we remain confident in our long-term prognosis for Toolstation."

RBC trimmed its price target to 1,400p from 1,500p as a result of these changes. "Whilst there is a lack of obvious catalysts, we see the shares as too cheap," it said. It rates the stock at ‘outperform’.

On Tuesday, Travis Perkins shares tumbled after it said its Toolstation business swung to an £8m loss in the first half from a profit of £10m in the same period a year earlier as the pandemic boost faded.