Stifel hails continued outperformance by Howden, keeps 'buy' rating
By Benjamin Chiou
Date: Thursday 26 Feb 2026
(Sharecast News) - Stifel has maintained a 'buy' rating on Howden Joinery Group after the trade kitchen supplier's better-than-expected full-year results on Thursday, hailing "another year of outperformance against a tough market".
Full-year revenues from Howden were up 4% at £2.42bn, coming in ahead of Stifel's and consensus forecasts of £2.40bn, helped by 2.6% growth in UK like-for-like sales.
Operating profits of £355m, up 5% year-on-year, were also well above the £341m market estimate, helped by improving margins despite cost pressures.
"Howden has outperformed the wider kitchen market again (with the overall market seeing a 'modest contraction'). The International like-for-like was +9.3%, impressive given the weak consumer environment in France," Stifel said in a research note.
Looking forward, the broker said the company is well placed to recover when consumer confidence in the UK picks up, estimating that restoring the volumes and margins lost since 2021 (-10% and -360bp respectively) could add almost 40% to current annual profits.
"The shares trade at 16.9x 12m forward PER (Bloomberg consensus), around 5% ahead of the 10-year average. This does not feel excessive in our view given the likelihood of improving growth in the UK and that Howden continues to lengthen its track record of market outperformance, high returns and capital discipline. The market also admires its widening moat and the strength of its balance sheet," Stifel said.
The broker has a 950p target price for the stock, which was up 8.7% at 930.5p by 1224 GMT.
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