Stifel upgrades Barratt Redrow, Crest Nicholson

dl barratt developments plc bdev consumer discretionary consumer products and services household goods and home construction home construction ftse 100 premium 20230327 1924 — Barratt DevelopmentsSharecast graphic / Josh White

Taylor Wimpey

153.90p

13:04 11/10/24

1.28%

1.95p

Stifel adjusted its ratings on several UK housebuilders on Friday, upgrading Barratt Redrow and Crest Nicholson to ‘buy’ from ‘hold’ on the back of underperformance and a compelling valuation, respectively.

Barratt Redrow

462.00p

13:05 11/10/24

1.90%

8.60p

Crest Nicholson Holdings

177.30p

13:04 11/10/24

0.80%

1.40p

FTSE 100

8,234.39

13:05 11/10/24

n/a

FTSE 250

20,726.63

13:05 11/10/24

n/a

FTSE 350

4,542.98

13:05 11/10/24

n/a

FTSE All-Share

4,500.24

13:05 11/10/24

n/a

Household Goods & Home Construction

13,357.16

13:04 11/10/24

1.23%

161.91

Persimmon

1,581.50p

13:04 11/10/24

0.51%

8.00p

However, Vistry was cut to ‘hold’ from ‘buy’ after the recent profit warning, and Bellway suffered the same downgrade due to outperformance.

"Fundamentals and an expert panel point to a strengthening housing market, which should underpin rising house price, unit completions and margins for the UK housebuilders," Stifel said.

It added that recent bond market moves show the importance of the upcoming Budget as an obstacle to be cleared.

Stifel’s top picks remain Persimmon, Taylor Wimpey and MJ Gleeson.

It said Persimmon and MJ Gleeson both have attractive exposures to the north and first-time buyers.

Meanwhile, Taylor Wimpey has land, sites and a "predictable" dividend.