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(Sharecast News) - Analysts at RBC Capital Markets updated their model on Howden Joinery to include the firm's recently completed acquisition of DIY Kitchens, aligning its estimates ahead of H1 results on 23 July.
RBC Capital, which hiked its target price on the stock from 900p to 960p, said its changes solely reflected the addition of DIY Kitchens and said it had made no changes to its assumptions for the underlying business.
"Our adjusted earnings per share estimates increase by 1.7%/4.7%/5.1% for FY26-28," said the Canadian bank, which reiterated its 'sector perform' rating on the stock.
"We forecast sales of 1.043bn and PBT of 120m, reflecting the typical H1 PBT weighting of 34% (ex DIY). Our FY26E PBT pre DIY Kitchens was 355m."
RBC Capital added that it believes Howden can sustain a 6% ten-year revenue compound annual growth rate, through continued depot expansion, maturing depots and subsequent market share gain.
Reporting by Iain Gilbert at Sharecast.com
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