Panmure Liberum rates Travis Perkins (LSE:TPK) as a BUY with a 740p price target and says operational improvement is the investment case after a challenging first quarter.
Analyst Adrian Kearsey argues the UK building‑materials distributor can restore gross and net margins through a more assertive pricing stance, further procurement benefits and tighter overhead control, with productivity reallocations at the centre of his thesis.
The note flags Q1 read‑throughs, group like‑for‑like revenue -1.7%, Merchanting LFL -2.3% (price and mix +1.0%), Toolstation UK LFL +2.6%, Toolstation Benelux LFL -7.1% and a -1.9% network change from the 2025 Staircraft disposal, and trims Panmure's FY26 EBIT margin assumption from 3.2% to 2.8%, driving a 19.6% PBT downgrade while expecting further overhead repositioning including headcount reductions and role reallocation.
