This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
Data shows a slowdown in UK House price growth which is bad for a houebuilder. Competitor Crest Nicholson recently (12 June) highlighted rising costs hurt profits and margins, echoing brick & tile manufacturer and supplier Ibstock (24 May) about raising its product prices. The company’s 4% dividend yield is half that of its UK Index sector peers. Results on June 20 have potential to disappoint.
Note that better than expected full year 17/18 results on June 20 could fuel a share price rally, as could confirmation that a UK interest rate rise is no longer forthcoming, a jump in UK consumer confidence and/or a resumption in UK house price rises.
Consensus is skewed bearish with only 12% of analysts rating the shares Buy, and a not insignificant 31% saying Sell. Broker price targets are also weighted to the downside, with 64% of targets lower than current levels and consensus currently 6% below. While a raft of ratings downgrades by the Neutrals could help the shares fall further, upgrades by Neutrals/Sellers could help the shares rise. The same is true of price targets.
Next Event: 20 June, FY Results
Latest Broker 12-Month Consensus: 13% Buy, 56% Hold, 31% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | -2.5 | -0.3 | 8.9 | 1.6 | 31.8 | 34.2 | 32.0 | 83.4 | 107.3 |
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