RBC Capital Markets has stuck with its positive stance on Barratt Redrow, arguing that the recent sell-off in the shares has been overdone.
The investment bank kept its outperform rating and 350p price target, implying upside of around 27% from the current 276.4p.
RBC said the shares were pricing in a slowdown that it was not seeing in the underlying housing market data.
The note followed full-year results from the UK's largest housebuilder by volume, published a day earlier.
Help-to-Buy hopes
A potential boost, RBC said, was the prospect of a revived Help-to-Buy, the government scheme that once lent first-time buyers a slice of a new home's price.
An independent evaluation from the housing ministry gave the scheme a positive verdict and played down fears it had fuelled house price inflation.
Analyst Anthony Codling said that left fewer barriers to a relaunch than before.
Changing of the guard
The results marked the end of an era, with David Thomas bowing out after 17 years at the group, the last 11 as chief executive.
He hands over to Dean Banks, who takes the top job from 21 September, with the company still without a permanent group finance chief.
Cyclical headwinds
RBC acknowledged that Barratt faced challenging market conditions and was still digesting the bumpy integration of Redrow, which it bought in 2024.
Building safety problems emerged only after that deal completed.
The bank made only small changes to its forecasts, trimming its full-year revenue estimate by 1.3% while lifting adjusted gross profit by 3.4%.
Barratt sold 17,667 homes last year and is targeting 22,000 a year over the medium term.
