Taylor Wimpey (TW.)

Sector:

Household Goods

Index:

FTSE 100

165.60p
   
  • Change Today:
      1.60p
  • 52 Week High: 192.25
  • 52 Week Low: 129.30
  • Currency: UK Pounds
  • Shares Issued: 3,279.83m
  • Volume: 25,146,726
  • Market Cap: £5,431m
  • Beta: 0.02

Redburn downgrades Crest Nicholson after 'torrid' 2018

By Michele Maatouk

Date: Thursday 24 Jan 2019

LONDON (ShareCast) - (Sharecast News) - Redburn cut its stance on Crest Nicholson to 'neutral' from 'buy' on Thursday as part of a broader note on UK housebuilders.
It said that Crest, its only recommendation change, had a "torrid" 2018 operationally and there is no notable respite in sight, at least relative to the sector.

"The beginning of the group's FY19 (from the end of October) coincided with the escalation of UK political tension, and starting order-book support was limited. Sales outside of Help to Buy's price cap (£600,000+) are set to stay at up to 25% of revenues this year and will likely remain tough.

"In addition, we have updated our incentive tracker, looking at the group's website - this shows that 84% of the group's sites are actively advertising incentives, up from 57% in August and 31% in March."

Redburn also said the jury is out on the quality of the group's recent land buying. "While we accept the price-point issue is a general top-down challenge, it does appear Crest has been faring less well than other similarly priced peers - notably Berkeley (outside London), Countryside and even Redrow," it said.

While it's not a problem in its own right, the balance sheet is the least strong in the sector when you consider the combination of average debt and land creditor usage, it argued.

"Our buy Crest has been value-based and, barring a major downturn, it is hard to argue the shares are expensive. Indeed, we see fundamental upside of 28%. But we are held back by the risks and at the very least find it hard to see why investors should opt for Crest over mid-cap peers Bellway and Redrow, both of which offer more upside with less risk."

Redburn said Persimmon remains its top pick thanks to its price point, margins and net cash. Meanwhile, it remains a buyer of Barratt, Bellway, Redrow and Taylor Wimpey, with Bovis and Berkeley remaining at 'neutral'.

Redburn has a 455p price target on Crest.

On the sector more broadly, Redburn was upbeat. "Popular commentary continues to paint the UK housing market as weak, but we view activity as remarkably resilient considering Brexit uncertainties. This reflects solid underlying fundamentals (employment, pent-up demand, policy, credit and supply), which look set to persist," it said.

At 1245 GMT, Crest shares were down 1.9% to 348.60p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

Taylor Wimpey Market Data

Currency UK Pounds
Share Price 165.60p
Change Today 1.60p
% Change 0.98 %
52 Week High 192.25
52 Week Low 129.30
Volume 25,146,726
Shares Issued 3,279.83m
Market Cap £5,431m
Beta 0.02

Taylor Wimpey Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
70.65% above the market average70.65% above the market average70.65% above the market average70.65% above the market average70.65% above the market average
46.15% above the sector average46.15% above the sector average46.15% above the sector average46.15% above the sector average46.15% above the sector average
Price Trend
15.47% below the market average15.47% below the market average15.47% below the market average15.47% below the market average15.47% below the market average
40.74% below the sector average40.74% below the sector average40.74% below the sector average40.74% below the sector average40.74% below the sector average
Income
96.66% above the market average96.66% above the market average96.66% above the market average96.66% above the market average96.66% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Growth
14.67% below the market average14.67% below the market average14.67% below the market average14.67% below the market average14.67% below the market average
11.11% below the sector average11.11% below the sector average11.11% below the sector average11.11% below the sector average11.11% below the sector average

What The Brokers Say

Strong Buy 9
Buy 0
Neutral 4
Sell 0
Strong Sell 0
Total 13
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Taylor Wimpey Dividends

  Latest Previous
  Interim Final
Ex-Div 03-Oct-19 04-Apr-19
Paid 08-Nov-19 17-May-19
Amount 3.84p 3.80p

Trades for 17-Oct-2019

Time Volume / Share Price
16:35 6,265,629 @ 165.60p
16:29 401 @ 165.60p
16:29 1 @ 165.55p
16:29 3,004 @ 165.70p
16:29 10,023 @ 165.70p

Taylor Wimpey Key Personnel

CEO Pete Redfern
Chair Kevin S Beeston

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