We suspected that Howden might have traded well in the most recent couple of months and its trading update is not a disappointment in that regard. Sales increased by c8% in LFL depots, taking the 16 week growth to 6.4% LFL (8.7% total growth). The commentary on pricing (vs FX headwinds) is also encouraging. We therefore anticipate low end forecasts being upgraded by c2% this morning. Alongside the reassurance on margins we would expect the shares to claw back the remainder of the gap (vs the recent 450p low) to our target price of 500p.
