Wolseley raises earnings forecast

Published:  01 March, 2010

LONDON: Wolseley plc is sufficiently confident that it has raised its earnings guidance for the first time in three years.

With five months of the financial year still to run, the move suggests that gross margin pressure at its US operation, Ferguson is not accelerating, said share broker, UBS.

The broker has upped its price target from 1585p to 1723p in response to Wolseley's 10% increase in earnings guidance. The UBS 'buy' recommendation remains unchanged.

The Swiss bank is looking for the unveiling of the new chief executive's strategic review on 22 March to provide a catalyst for the share price.

New Wolseley boss Ian Meakins will highlight what is core, what will be slimmed down, and what may be sold in due course, UBS predicted.

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