City boost for builders' merchants
Published: 12 January, 2011
LONDON: A boost for builders' merchants and technology stocks helped push the FTSE 100 back above 6000 yesterday morning.
Howden Joinery was up 11% after saying it expected its full-year pre-tax profit to beat forecasts comfortably. The positive news boosted the wider builders' merchant sector: Travis Perkins was up 57p to 1094, while FTSE 100 stock Wolseley was up 122p to 2179.
Wolseley has had its price target upped to 3000p by Citigroup, while Deutsche Bank has also raised its target price. Travis Perkins rises in sympathy.
RBS now rates Travis Perkins a "buy" with a revised and raised target price of £12.95. Analysts at RBS believe the firm's purchase of BSS Group last year is an attractive earnings driver for the next two years, until the underlying market recovery takes over in 2013. RBS believe that the BSS acquisition gives the company significant buying power in new areas.