UBS ups ratings on Crest Nicholson, Persimmon and Vistry

UBS has upgraded Crest Nicholson, Persimmon and Vistry Group in its latest review of UK housebuilders.

In a note published on Monday, the bank said it was a "mixed picture" for the sector, but was turning "somewhat more positive".

It continued: "We see a bit more value after the recent pullback in the sector, but think the recovery path remains uncertain.

"The key questions from here are whether the housing market - both in terms of price and sales rates - continues to recover, and how the policy backdrop evolves."

It noted that risks included further downside to house prices, sticky build-cost inflation and mortgage rate volatility, but that on balance, "valuations look reasonably attractive".

Crest Nicholson, Persimmon and Vistry were all upgraded to ‘neutral’ from ‘sell’, while ‘buy’ recommendations on Barratt Developments, Bellway, Berkeley, Redrow and Taylor Wimpey were reiterated.

UBS also increased price targets on all housebuilders bar Redrow, which it left unchanged at 600p.

As at 1300 BST, Crest Nicholson was up 3% at 235.31p, while both Persimmon and Vistry were 1% stronger at 1,224.62p and 771.5p respectively. UBS has target prices of 245p, 1,300p and 750p on the three housebuilders respectively.