Margin pressures see housebuilders downgraded
Liberum has downgraded its rating of some of the UK’s largest housebuilders. Analyst Charlie Campbell said housebuilder valuations were too optimistic in light of expected pressure on gross margins in the coming years.
He downgraded Barratt, Persimmon and Taylor Wimpey from hold to sell. Redrow’s rating was cut from buy to hold. The downgrades were followed by significant falls in the companies’ share prices, with Taylor Wimpey closing 5.3% lower and Barratt down 3.9% on the day the note was published, during which the FTSE 100 closed marginally lower.
Liberum has downgraded its rating of some of the UK’s largest housebuilders. Analyst Charlie Campbell said housebuilder valuations were too optimistic in light of expected pressure on gross margins in the coming years.
He downgraded Barratt, Persimmon and Taylor Wimpey from hold to sell. Redrow’s rating was cut from buy to hold. The downgrades were followed by significant falls in the companies’ share prices, with Taylor Wimpey closing 5.3% lower and Barratt down 3.9% on the day the note was published, during which the FTSE 100 closed marginally lower.
Liberum has downgraded its rating of some of the UK’s largest housebuilders. Analyst Charlie Campbell said housebuilder valuations were too optimistic in light of expected pressure on gross margins in the coming years.
