Construction and Housebuilding

Becoming more cautious on 2023 but reasonable downside is priced in

  • Sectors : Construction and Housebuilding
  • Companies : Bellway plc | Berkeley Group | Persimmon plc | Taylor Wimpey plc | Vistry Group | Barratt Developments plc | Redrow plc

Ratings

Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
Barratt Developments plc OUTPERFORM 25/06/20 Neutral 24/03/14 506p
Bellway plc OUTPERFORM 24/03/14 Neutral 10/09/13 2464p
Berkeley Group UNDERPERFORM 10/09/13 Under Review 21/05/13 4298p
Persimmon plc NEUTRAL 17/08/20 Underperform 10/09/13 1904p
Redrow plc NEUTRAL 10/09/13 Under Review 21/05/13 578p
Taylor Wimpey plc OUTPERFORM 10/09/13 Under Review 21/05/13 128p
Vistry Group OUTPERFORM 10/09/13 Under Review 21/05/13 918p

DAVY VIEW

We are making material downgrades to our forecasts across the UK homebuilder sector, starting in calendar 2023. The end of Help to Buy and increasingly squeezed affordability are likely to combine with a bleak UK macro outlook to materially cool the new homes market in the next 12 months. We are cautious on the sector but with a preference for Taylor Wimpey and Vistry Group.

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Aug 2 2022, 07:35 IST/BST

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