Wolseley: shares fall after broker downgrade.
(CercleFinance.com) - Wolseley shares are down over 1% on Thursday after UBS downgraded the British plumbing supplies group, citing doubts on the company's operational leverage.
The broker cut its recommendation on the shares to "neutral" from "buy," with a new price target of 5,300 pence, against 5,475 pence previously.
Given the de-rating of the British company's US peer group by over 10% since March and Wolseley's decision not to pursue a "more radical" corporate transformation, UBS says it now sees insufficient upside to warrant a "buy" rating.
The shares are currently down 1.2 percent at 4,859 pence. The stock has fallen by over 2 percent so far this year.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The broker cut its recommendation on the shares to "neutral" from "buy," with a new price target of 5,300 pence, against 5,475 pence previously.
Given the de-rating of the British company's US peer group by over 10% since March and Wolseley's decision not to pursue a "more radical" corporate transformation, UBS says it now sees insufficient upside to warrant a "buy" rating.
The shares are currently down 1.2 percent at 4,859 pence. The stock has fallen by over 2 percent so far this year.
Copyright (c) 2017 CercleFinance.com. All rights reserved.