Canaccord Genuity nudges up target price on Victorian Plumbing

(Sharecast News) - Analysts at Canaccord Genuity lifted their target price on Victorian Plumbing to 135p from 132p on Tuesday and reiterated their 'buy' stance on the back of a stronger‑than‑expected trading update. Canaccord Genuity said FY26 revenue rose 11% to £344m, ahead of its £330m estimate, with adjusted pre-tax profits of around £22m and cash of £25m also beating forecasts.

Order volumes grew 13%, offset by a small drop in average order value, while the newer tiles and flooring division surged 76% to £31m and trade revenues rose 6% to £78m. Canaccord highlighted continued working‑capital strength and modest upgrades to its revenue and cash forecasts.

Crucially, it said Victorian Plumbing had maintained its growth rate despite deteriorating economic data and weaker industry trends, implying accelerating market‑share gains.

Growth initiatives also impressed, with tiles and flooring showing secular momentum and MFI revenue ramping up sharply in the second half as its product range nears completion. While Canaccord remains conservative on the relaunched MFI furniture and homewares unit, it acknowledged that early traction was encouraging.

With the shares trading on 13.8x FY27 earnings, the broker argued the valuation remains attractive given the group's growth profile, prompting the target price upgrade.





Reporting by Iain Gilbert at Sharecast.com