X

X

Mortgage & Property

New Insurance Professional

Family Office Bulletin

Advertise

Mortgage Property

Insurance Professional

Family Office

Broker tips: Travis Perkins, XP Power

Analysts at Canaccord Genuity raised their target price on Travis Perkins from 1,450.0p to 1,525.0p on Wednesday as a result of the group “reigniting its simplification plans”.
Canaccord stated that Travis Perkins had enjoyed “a strong bounce back” in the second half of 2020, with its Toolstation and Wickes businesses seeing “particularly good growth”.

The analyst also noted Travis Perkins had done “an impressive job” of reducing leverage during the year, something then added was “a real worry” last spring.

Canaccord, which reiterated its ‘hold’ rating on the stock, said the key news in Travis Perkins’ most recent update was in relation to the strategic initiatives and the recommencement of its de-merger of Wickes, with management continuing to focus on improving its core business and simplifying the group.

“The de-merger of Wickes is a big step in this direction and being able to dispose of the plumbing and heating business for an acceptable price would leave the group in good shape,” said Canaccord.

Analysts at Berenberg raised their target price on XP Power from 5,500.0p to 5,945.0p on Wednesday following the group’s “impressive” 2020 performance.

Berenberg highlighted that XP Power had delivered organic revenue growth of 17% year-on-year, operating margins of 19.7%, up 220bp, strong cash generation, 98% conversion, and adjusted pre-tax profits 4% ahead of market expectations.

While the analysts acknowledged that £15.0m-20.0m of Covid-19 related healthcare orders were not expected to repeat in 2021, they said the company was still well placed to benefit from a cyclical recovery in industrial technology alongside continued momentum in semiconductors.

“We believe XPP deserves credit for its execution through a difficult period and we continue to see significant short and long-term tailwinds for the company,” said Berenberg, which reiterated its ‘buy’ rating on the stock.

The German bank added that in the medium to long term, it believes earnings can double in five years through structural growth in XP’s end-markets and market share gains.

This Week’s Most Read

  • Investing for the year ahead: eight funds and investment trusts for 2022

    The year end is a natural time for people to review their investment portfolios and ensure it is well positioned for the year ahead. Ryan

  • Is your art in the right place?

    By Arthur Byng Nelson, Solicitor and Legal Director at law firm Harold Benjamin. Introduction: Clients with Art For some wealthy individuals a great deal of

  • SJP celebrates its 1000th Chartered Financial Planner

    St. James’s Place (SJP) celebrates surpassing its 1000th adviser to achieve Chartered status. Former law graduate, Molly O’Donnell, came into SJP via the Academy and,

  • Invesco: Outlook for ESG in 2022

    By Cathrine de Coninck-Lopez, Global Head of ESG at Invesco. I have every reason for optimism in 2022. There is clear progress in the environmental,

  • Silent Cyber: a threat for financial advisers?

    By Chris Davies, Executive Director & Co-Lead of IFA Business Unit at Howden The way many of us work has seen a fundamental shift since

  • 7IM partners with Door to strengthen regulatory and stewardship strategies

    7IM today announces that it has partnered with Door, a company dedicated to improving due diligence processes, in a move that will assist the firm

  • Selling the family-owned business: Key considerations for families looking to sell and protect the family legacy

    By Richard Lane, partner in the Corporate and Family Business team at leading law firm Farrer & Co. For a family business owner, the smooth

  • AJ Bell Active v Passive Report 2021

    Only a third of active equity funds (34%) beat a passive alternative this year, according to our latest Manager versus Machine report Active outperformance was

  • The Fall and Rise of Structured Products

    In this episode Ian Lowes, the founder of Structured Products Review, speaks about why the pre-packaged investment strategy is so misunderstood, and how so many

  • Square Mile Academy of funds report ratings round up for November

    Five new ratings, including three Responsible ratings One rating upgraded One fund reintroduced to the Academy of Funds Analysts at Square Mile Investment Consulting and

Keep updated on the most important financial events 

Make sure you are an informed

wealth professional..

Adblock Blocker

We have detected that you are using

adblocking plugin in your browser. 

IFA Magazine