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(Sharecast News) - Panmure Liberum has reiterated a 'buy' rating on building merchant Travis Perkins, saying self-help measures should boost earnings upside potential even if market conditions don't improve.
The broker said that the company is regaining some lost market share after having streamlined its business model in 2021, while recent updates show how an increased customer focus is delivery improved quarterly like-for-like sales.
"We expect this trend to continue. Therefore, even without a rebound in the trading environment, we see scope for modest revenue growth and some margin expansion," Panmure Liberum said.
Any improvement in the trading backdrop provides scope for an upside surprise, while the incoming chief executive who starts in January could be a catalyst for further growth.
However, the stock remains at the bottom end of its 10-year range, with investors across the sector nervous about the financial health of the whole building materials supply chain.
The broker has a 740p target price on the stock, which was up 0.2% at 606.5p by 1306 GMT.
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