Travis Perkins shares fall amid pricing worries
Published: 21 October, 2009
LONDON: Travis Perkins shares were under pressure last night, falling back amid concern that the market may be anticipating a swifter turnaround in profits than likely in the current economic environment.
Travis Perkins drifted 32 lower to 848p as HSBC resumed coverage with an 'underweight' rating and a 790p price target.
HSBC analysts said: "We think Travis Perkins has the correct strategy for recovery, but the market is discounting a faster profit recovery than we believe is likely."
The broker said: "We believe a combination of mix change and pricing pressure in some lines is likely to dampen the value of sales and profit growth."
HSBC resumed coverage with an "underweight" rating and 790p target price, which contributed to the stock's decline by 32p last night to 848p.
Overall, the FTSE 100 was weak, easing by 38.14 points to 5,243.4 as traders expressed concern about the latest public sector net borrowing figures.