Equity Analysis /
United Kingdom

GB : Travis Perkins - Wickes to unlock sum of the parts

    Charlie Campbell
    Charlie Campbell

    Analyst - Building Materials, Equipment Hire & Housebuilders

    Marcus Cole
    Marcus Cole

    Analyst - Building Materials, Equipment Hire & Housebuilders

    CGS-CIMB
    20 April 2021
    Published by

    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.