Taylor Wimpey (TW.)

Sector:

Household Goods

Index:

FTSE 100

163.55p
   
  • Change Today:
      0.60p
  • 52 Week High: 192.25
  • 52 Week Low: 129.30
  • Currency: UK Pounds
  • Shares Issued: 3,279.82m
  • Volume: 12,005,700
  • Market Cap: £5,364m
  • Beta: 0.01

UBS and Peel Hunt back Persimmon's focus on quality

By Abigail Townsend

Date: Thursday 04 Jul 2019

LONDON (ShareCast) - (Sharecast News) - UBS and Peel Hunt have maintained their recommendations on Persimmon, as the house builder looks to improve its battered reputation.
The FTSE 100 housebuilder, which came in for severe criticism last year over the vast salary paid to its former chief executive, has developed a reputation for poor building quality and customer service, with its three-star House Builders Federation rating one of the lowest.

However, under new chief executive Dave Jenkinson, the company is looking to overhaul its reputation. It has put in place a number of initiatives, including introducing a customer retention programme and selling properties at some sites at later stages of the construction process.

That caused the number of completions to fall in the first half, to 7,584 from 8,072 a year earlier, which in turn depressed revenues, which slipped 5% to £1.75bn.

But analysts have largely welcomed the shift towards improved quality, despite the fall in revenues.

Peel Hunt, which has a 'hold' recommendation Persimmon and a price target of 2,025p, said: "This has resulted in fewer sales in the first half and a build-up of inventory.

"This increase in build and slower releases is likely to result in a bigger skew to second half sales, completions and profit in previous years. This obviously carries an incremental risk in terms of market - especially Brexit - conditions.

"Overall, we see limited change to forecast at this point, but with a mix shift of slightly lower volumes being offset by slightly higher margins.

"The shares have struggled during 2019 as a result of the problems the group has had with build quality and the measures it had to put in place. To date they are up 2%, while the sector is up 12% and its two biggest peers, Barratt Developments - +25% - and Taylor Wimpey, +18%, have materially outperformed."

For their part, UBS, which has a 'buy' recommendation and a price target of 2,650p, said: "While volume shortfall will likely lead to some modest consensus earnings per share reductions, we think the shares are discounting a much more dramatic reduction in profitability.

"Key in restoring confidence is fixing the customer care issues, ideally by improving the HBF score to four-star status as soon as possible."

As at 1430 BST, shares in Persimmon were largely flat, off 16p at 1,971p.

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Taylor Wimpey Market Data

Currency UK Pounds
Share Price 163.55p
Change Today 0.60p
% Change 0.37 %
52 Week High 192.25
52 Week Low 129.30
Volume 12,005,700
Shares Issued 3,279.82m
Market Cap £5,364m
Beta 0.01

Taylor Wimpey Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
71.53% above the market average71.53% above the market average71.53% above the market average71.53% above the market average71.53% above the market average
25.93% above the sector average25.93% above the sector average25.93% above the sector average25.93% above the sector average25.93% above the sector average
Price Trend
27.54% below the market average27.54% below the market average27.54% below the market average27.54% below the market average27.54% below the market average
42.86% below the sector average42.86% below the sector average42.86% below the sector average42.86% below the sector average42.86% below the sector average
Income
96.68% above the market average96.68% above the market average96.68% above the market average96.68% above the market average96.68% 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
14.02% below the market average14.02% below the market average14.02% below the market average14.02% below the market average14.02% below the market average
7.14% below the sector average7.14% below the sector average7.14% below the sector average7.14% below the sector average7.14% below the sector average

What The Brokers Say

Strong Buy 10
Buy 0
Neutral 4
Sell 0
Strong Sell 0
Total 14
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-Sep-2019

Time Volume / Share Price
16:45 500,000 @ 160.45p
16:35 5,109,440 @ 163.55p
16:29 1,408 @ 163.15p
16:29 339 @ 163.15p
16:29 63 @ 163.15p

Taylor Wimpey Key Personnel

CEO Pete Redfern
Chair Kevin S Beeston

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