LONDON (ShareCast) - (Sharecast News) - RBC Capital Markets upped its price target on Travis Perkins to 1,950p from 1,900p on Tuesday to reflect the higher-than-expected disposal price for its plumbing & heating distribution business.
The bank, which rates the stock at 'outperform', has adjusted forecasts for the P&H disposal and special dividend and factored in the share buyback.

"We expect H1 results to be strong given current trends and potential for stock profits and see the September capital markets day as a further catalyst," RBC said.

In the medium term, it sees re-rating potential as Toolstation becomes a bigger part of the group. RBC also said it sees "significant" cash return potential.

Travis Perkins announced last month that it had agreed to sell its P&H distribution business to an affiliate of alternative investment firm H.I.G. Capital for £325m in cash.

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