Wolseley bucks stock market trend
Published: 15 January, 2010
READING: Wolseley bucks stock market trendLondon: Wolseley bucked yesterday's stock market trend with its shares rising 1.5% to £14.47 after Goldman Sachs added the stock to its "conviction buy" list.
The FTSE 100 registered its first significant decline of the year yesterday, but Wolseley dodged the weak trend with the builders' merchant climbing to its highest since October.
Goldman said housing markets, which provide more than half of Wolseley's sales, have been showing signs of stabilisation.
Analyst John Woodman at the company said cost savings made in the downturn will feed into earnings numbers from the first quarter of 2010. This gives Wolseley the potential to surprise the market with the speed of profit recovery.
He put a £17.80 price target on Wolseley stock.