We raise our target price from 1650p to 1900p as we dig deeper into the sum of the parts. We expect Wickes to trade at a significant premium to the group. Toolstation is no longer small enough to ignore and should be highly valued for peer-leading growth. Core merchanting is improving and the specialists have leading positions. We do not see the recovery in home improvement activity as a blip; it is underpinned by rising housing transactions.
Equity Analysis /United Kingdom
GB : Travis Perkins - Wickes to unlock sum of the parts
20 April 2021