Wolseley is trading at £32.89. The share price is broadly unchanged since the company revealed its first-half figures in March, in which both revenue and net income exceeded estimates. The building supply merchants ‘delivered good performance’ in its US and UK operations, but the eurozone countries are underperforming.
Wolseley is on the acquisition trail. The company has a war chest of £300 million and it hopes to expand in the UK, US and Canada. Over half of its revenue is derived from the US and in March the company stated that the strong pound impacted sales. The decline in the pound since then may filter down to the company’s profits.
Equity analysts are bullish on the stock. Out of the 26 recommendations, 15 are buys, eight are holds and three are sells.
The 50-day moving average of £31.93 is providing support and if the full-year figures exceed analysts’ estimates, the stock could target £35.