Liberum downgrades Taylor Wimpey on valuation grounds
Taylor Wimpey
122.15p
16:34 20/12/24
Liberum downgraded Taylor Wimpey on Monday as it took a look at the UK housebuilding sector.
Berkeley Group Holdings (The)
3,898.00p
17:15 20/12/24
Construction & Materials
11,998.68
17:14 20/12/24
FTSE 100
8,084.61
17:04 20/12/24
FTSE 250
20,450.69
17:14 20/12/24
FTSE 350
4,463.29
17:14 20/12/24
FTSE All-Share
4,421.11
17:04 20/12/24
FTSE Small Cap
6,787.84
17:09 20/12/24
Household Goods & Home Construction
10,969.32
17:14 20/12/24
MJ Gleeson
512.00p
16:45 20/12/24
Vistry Group
659.00p
17:15 20/12/24
The broker said shares in the sector have started 2023 well, now up 38% from lows, after rising 18% in the year to date as the macro-economic outlook has improved.
Liberum said it still sees upside across the sector, but is becoming a little more selective. It downgraded Taylor Wimpey to ‘hold’ from ‘buy’ on valuation grounds after the shares’ outperformance, and kept the price target at 125p
Liberum said its preferred stocks are Bellway, MJ Gleeson and Vistry.
It likes Bellway for its strong balance sheet, lowly relative valuation, strong operational management team and balanced portfolio.
It also continues to favour Gleeson as its Home business will soon grow much more quickly than peers, given the underserved market in which it operates, and as its growth is much less capital-absorptive than peers.
"Vistry is another stock where a premium should be re-established to the sector. Partnerships should prove its resilience and premium growth in 2023, helping Vistry’s returns hold up much better than peers," it said.
Liberum upped its price target on Berkeley Group to 4,750p from 4,500p and maintained a ‘buy’ rating.