Travis Perkins (TPK)

Sector:

Support

Index:

FTSE 250

729.40p
   
  • Change Today:
    -5.60p
  • 52 Week High: 959.40
  • 52 Week Low: 692.20
  • Currency: UK Pounds
  • Shares Issued: 212.51m
  • Volume: 772,859
  • Market Cap: £1,550.04m
  • RiskGrade: 152

Broker tips: Royal Dutch Shell, Travis Perkins, Fresnillo

By Alexander Bueso

Date: Monday 19 Jul 2021

LONDON (ShareCast) - (Sharecast News) - Analysts at Morgan Stanley reiterated their 'overweight' stance on shares of Royal Dutch Shell in anticipation of share buyback announcements and higher dividend payouts from the oil major.

They also expected the company's shares to outperform and bumped up their target price from 1,630.0p to 1,815.0p.

Brent crude oil prices had risen from $61.0 a barrel in the first quarter to $69.0 over the three months to June, alongside strengthening natural gas prices.

Yet the company's share price had trailed the company's earnings outlook "considerably" - although they expected that would change.

The reason in their opinion for that disconnect was the uncertainty that investors faced around the energy transition, on top of the sector's "mixed at best" track record over the past decade when it came to capital allocation.

Hence, investors were relying on just the Dividend Discount Model to value firms in the sector, "giving little credit for cash flow retained within companies."



JPMorgan Cazenove upgraded Travis Perkins on Monday to 'overweight' from 'neutral' and hiked the price target to 2,000p from 1,600p.

The bank said that while the shares are up 31% year-to-date, they have only largely recovered the poor performance of last year, underperforming the European Merchants/Distribution/Retail names.

"Meanwhile, the group has simplified its structure, leading to significantly improved balance sheet and returns profile which, in our view, is not reflected in the valuation yet," it said.

JPM said it was upgrading the shares after resetting its forecasts following the simplification of the group and argued that there is "considerable" scope for a re-rating.



RBC Capital Markets upgraded its stance on shares of Fresnillo to 'outperform' from 'sector perform' as it argued that after weak first-quarter silver production and lower guidance, market expectations "seem to have been largely reset".

The bank said the precious metals miner is now set to deliver a growth phase, with the ramp-up of the Juanicipio project improving free cash flow.

"With the shares underperforming peers and trading at the low end of its historical multiple ple range, we upgrade our recommendation," RBC said.



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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Travis Perkins Market Data

Currency UK Pounds
Share Price 729.40p
Change Today -5.60p
% Change -0.76 %
52 Week High 959.40
52 Week Low 692.20
Volume 772,859
Shares Issued 212.51m
Market Cap £1,550.04m
RiskGrade 152

Travis Perkins Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
10.19% below the market average10.19% below the market average10.19% below the market average10.19% below the market average10.19% below the market average
20% below the sector average20% below the sector average20% below the sector average20% below the sector average20% below the sector average
Price Trend
50.29% below the market average50.29% below the market average50.29% below the market average50.29% below the market average50.29% below the market average
60.4% below the sector average60.4% below the sector average60.4% below the sector average60.4% below the sector average60.4% below the sector average
Income
30.64% below the market average30.64% below the market average30.64% below the market average30.64% below the market average30.64% below the market average
10.77% above the sector average10.77% above the sector average10.77% above the sector average10.77% above the sector average10.77% above the sector average
Growth
37.35% below the market average37.35% below the market average37.35% below the market average37.35% below the market average37.35% below the market average
40% below the sector average40% below the sector average40% below the sector average40% below the sector average40% below the sector average

What The Brokers Say

Strong Buy 3
Buy 0
Neutral 13
Sell 3
Strong Sell 0
Total 19
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Travis Perkins Dividends

  Latest Previous
  Final Interim
Ex-Div 28-Mar-24 05-Oct-23
Paid 09-May-24 10-Nov-23
Amount 5.50p 12.50p

Trades for 28-Mar-2024

Time Volume / Share Price
16:40 5,739 @ 729.55p
16:35 355,569 @ 729.40p
16:35 3,135 @ 729.40p
16:35 315 @ 729.40p
16:35 790 @ 729.40p

Travis Perkins Key Personnel

CEO Nick Roberts
CFO Duncan Cooper

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