This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Barratt Developments (BDEV) is the UK blue-chip laggard this morning after negative messages within a Q1 trading statement offset a solid order book and reiteration of FY guidance.
Weakness in the higher priced and higher margin key London market requiring ‘price action’ (management means discounts and disposals) is a concern for investors, especially after such positivity and relief about the UK property market holding up since June’s Brexit vote.
Lower land acquisition can also be considered a smoke signal for management confidence and outlook, something understandably influential for investors given the macro and political uncertainty facing markets.
After a recent 13% rebound today’s news has served to cap the shares once again just shy of their 200-day moving average. This maintains a trend of accelerated falling highs since end-May, well before the UK referendum, and keeps the shares within a falling channel since late August.
Mike van Dulken, Head of Research, 16 Nov
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research
Comments are closed.