Signs of stability in housing start to translate into stock market upgrades.

Collins Stewart have upgraded their outlook for builder Travis Perkins (LON:TPK).

They have set a new target price of 604p - currently shares in Travis Perkins are at 549p.

Collin Stewart say that with growing evidence of stability in UK housing justify their upgrade of Travis Perkins target price from 580p to 604p.

"Market conditions remain mixed but we continue to see Travis as operationally better placed than rivals. Following the rights issue, the group is on a firmer financial footing and may be able to pick up smaller companies at attractive prices during the downturn," says a memo released this afternoon.

The upgrade comes after the Royal Institute of Chartered Surveyors (RICS) says 6 per cent of estate agents across the UK said that property values had risen in May, while 42 per cent said that prices fell.