Deutsche Bank warns of further downgrades at Travis Perkins Proactive uses images sourced from Shutterstock
Deutsche Bank has repeated its ‘sell’ rating on Travis Perkins (LSE:TPK), warning that market forecasts for the builders’ merchant remain too high despite steep cuts already made this year.
Ben Wild, an analyst at the bank, set a price target of 470p, below the last close of 566.50p.
Since the bank downgraded the stock on 11 December, consensus earnings per share forecasts for 2026 and 2027 have fallen by around 26%.
The shares have dropped 8% over the same period.
Wild said there was still material downside risk to those forecasts.
For the first half, the bank expects adjusted operating profit of £50 million, 20% below the consensus figure compiled by Bloomberg.
Its estimates sit around 16% below consensus for the 2026 and 2027 financial years.
The shares trade on a forward price-to-earnings multiple of 20 times, more than two standard deviations above their long-run average.
Wild said further large downgrades were likely to drive the shares lower from here.
Travis Perkins (LSE:TPK) supplies building materials and tools to the construction trade through a network of branches across the United Kingdom.