Taylor Wimpey PLC (LON:TW.) remains Credit Suisse’s top pick among the UK housebuilders with the current share price providing a good entry point says the Swiss bank.
Shares in the builder TW share price move over the last few weeks looked overdone, with the price down from 190.40p and underperforming peers by 10 percentage points.
“In part, we think this is due to historical build cost performance (eg. 2019), but in reality think the risk is no more than average at this point due to increased focus on cost control over the last year.
“We also see the cladding and fire safety provisions as taken out of prudence rather than risk.”
House prices, meanwhile continue to power ahead with Nationwide’s latest survey seeing the highest growth in seven years, even the weaker comparisons of the first lockdown period.
Halifax today also reported annual house price inflation is now at its strongest level in nearly seven years. The average UK property price is at a record high of £261,743.
Shares in Taylor Wimpey rose 2.1% to 175p on a good day for the sector generally.