The price target stays the same at 729p but Numis's recommendation moves from 'add' to 'buy', with the broker saying that the current rating, which has the share price on about 1.2 times projected end-2019 net tangible asset value per share, is too low.
The projected dividend yield, at 4.7%, is handy too, the broker noted.
“Overall, this is a strong H1 performance and we are increasing 2018 PBT [profit before tax] estimates from £355mln to £365mln and 2019 from £395mln to £401mln – with higher volumes the main driver of the upgrade,” Numis said.
The forecasts are underpinned by the order book, which at the end of December was up 5% to a record level of £1.05bn.
At the time of the November update, the order book was up 3% year-on-year so the house-builder ended the year with increased momentum.
The broker said the company's past investment in land and work in progress (WIP), rather than returning a large amount of capital to shareholders, is feeding through to strong levels of volume and profit growth.
Shares in Redrow were up 2.9% at 610.5p in mid-morning trading.