LONDON (ShareCast) - (Sharecast News) - Analysts at Canaccord Genuity downgraded British builders' merchant Travis Perkins from 'buy' to 'hold' on Thursday ahead of the group's third-quarter report card next week.
Canaccord noted that it had only recently upgraded its rating on Travis Perkins to 'buy' as the shares looked "relatively attractive" despite the "relatively challenging trading outlook".

However, the Canadian broker stated that recent macro data points, such as UK services and construction PMIs, had deteriorated and noted trading was likely to remain difficult despite expectations for modest like-for-like growth during the third quarter.

Canaccord also highlighted potential catalysts for the shares such as Travis Perkins selling off its plumbing and heating business, with the group continuing to take out costs to support profits, but said that the UK RM&I market and consumer sentiment still remained "fragile".

"After a strong +41% increase in the share price over the last 12 months and a share price close to our price target, we downgrade our rating on valuation in the context of a likely weak trading backdrop," said Canaccord, which kept its 1,480p price target unchanged.

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