Westhouse rates Travis Perkins 'neutral' after conservative outlook

3rd Mar 2015 11:28

Travis Perkins delivered a "typically conservative statement" on Tuesday as it warned about a moderation of growth in the UK housing market, according to Westhouse Securities which kept a 'neutral' rating on the stock.The builders merchant and home improvement group said adjusted pre-tax profit rose 12.8% to £362.3m in 2014, slightly ahead of the consensus estimate of £362m, while adjusted earnings per share rose 14.9% to 119p compared with the 117p forecast.While the company narrowly beat forecasts with its annual results, shares declined in London on the back of a cautious outlook."Despite the moderate beat, we don't see much change to our 2015 estimates, possibly up no more than 2%," said analyst Alastair Stewart.Stewart said: "Travis's comments on the market were that it had 'settled into a still positive, but more moderated and consistent trend'. It expressed some caution on mortgage approvals, which had 'moderated' and are 'not expected to significantly reverse in 2015'."The focus will remain on self-help and out-performing its markets rather than growth in the market itself, which is largely dependent on transactions in the second-hand market."The broker maintained a 1,558p target price for the stock, which was down 2.4% to 1,976p by 11:25.