Construction and Housebuilding

Sector at attractive levels; upgrading Barratt Developments to ‘Outperform’

  • Sectors : Construction and Housebuilding
  • Companies : Bellway plc | Berkeley Group | Redrow plc | Taylor Wimpey plc | Vistry Group | Barratt Developments plc | Persimmon 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 499p
Bellway plc OUTPERFORM 24/03/14 Neutral 10/09/13 2531p
Berkeley Group UNDERPERFORM 10/09/13 Under Review 21/05/13 4423p
Persimmon plc UNDERPERFORM 10/09/13 Under Review 21/05/13 2276p
Redrow plc NEUTRAL 10/09/13 Under Review 21/05/13 466p
Taylor Wimpey plc OUTPERFORM 10/09/13 Under Review 21/05/13 144p
Vistry Group OUTPERFORM 10/09/13 Under Review 21/05/13 730p

DAVY VIEW

The sell-off in the UK housebuilders’ sector has provided an opportunity to enter the sector at historically attractive valuations. In this report, we upgrade Barratt Developments to ‘Outperform’ and have a constructive stance on the sector generally. Our top picks in the universe are Barratt Developments (price target 628p) and Bellway (price target 3,388p).

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Jun 25 2020, 06:45 IST/BST

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