LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg raised their target price on builders' merchant Travis Perkins from 1,390.0p to 1,430.0p, stating the group was recovering ahead of its expectations.

Berenberg said the pace of recovery in do-it-yourself and repair, maintenance and improvement spending had been "astonishing" and ahead of its expectations but stated that it was difficult to say whether or not it could be sustained in the second-half as pent-up demand rolls off.

However, the analysts believe their forecasts for Travis Perkins were "not demanding", assuming no further lockdowns take place.

"Moreover, the temporary increase in the stamp duty threshold and the Green Homes Grant in the UK are likely to provide further tailwinds," added the German bank.

The analysts also highlighted that with Travis Perkins' shares at a 14% discount to the domestic sector, they still see the firm's risk/reward scenario as being "attractive", leading them to reiterated their 'buy' rating on the stock.

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