Stifel upgrades Travis Perkins to ‘buy’

Stifel upgraded builders’ merchant Travis Perkins to ‘buy’ from ‘hold’ on Friday as it said the risk/reward was compelling at a historically low share price.

"We may be early, but we are convinced that Chair Drabble can keep improvement actions going and will bring in a high calibre CEO, that the cycle will turn and that our 2025 estimate is set conservatively," it said.

"Earnings should at least double if the 15% volumes lost since 2021 are recovered."

Stifel also said that consolidator QXO "appears to be just getting started".

It noted almost 50% upside to its unchanged 750p target price for Travis Perkins.

At 0935 BST, the shares were up 2.3% at 525.50p.