Barratt Developments Stock News

UK housebuilders face weak demand and rising cost pressures, RBC said, although the broker expects ‘Your First Home' to significantly boost newbuild sales. RBC's tracker puts five-year fixed mortgage rates at 5.3% for first-time buyers borrowing 75% of a property's value, up 20 basis points from April's 5.1% post-Iran peak.

UK housebuilders surged on Monday after the government confirmed plans for a new equity-loan programme intended to bring first-time buyers into the new-build market and stimulate residential construction. Barratt Redrow PLC (LSE:BTRW) jumped around 14% to 353p, while Persimmon PLC (LSE:PSN) climbed more than 15% to 1,332p.

RBC Capital Markets has stuck with its positive stance on Barratt Redrow PLC (LSE:BTRW), arguing that the recent sell-off in the shares has been overdone. The investment bank kept its outperform rating and 350p price target, implying upside of around 27% from the current 276.4p.

Persimmon PLC (LSE:PSN) and Barratt Redrow PLC (LSE:BTRW) have emerged as UBS's preferred UK housebuilders, with the investment bank arguing that investors should remain selective as elevated mortgage rates and construction costs delay a broader recovery. UBS initiated coverage of Persimmon with a ‘buy' rating and £13.25 price target and reiterated its ‘buy' recommendation on Barratt Redrow wit...

Barratt Redrow Plc's (LSE:BTRW) planned £100 million–£120 million capital return highlights a shift towards balance sheet discipline, that's according to Citi, though the American bank's London-based analysts noted that lower land investment could constrain medium-term growth. Citi still rates the housebuilder as a Buy, but cut its price target to 410p from 450p.

Barratt Redrow PLC's (LSE:BTRW) £400 million shareholder payout was a pleasant surprise to investors and analysts, winning broad support in the City on Wednesday, although brokers warned the housebuilder still faces another year of pressure on profit margins. The group announced plans to replace most of its dividend with share buybacks after ending the year with net cash of about £772 million, ...