Proactive Investors - Run By Investors For Investors

Redrow all the rage with brokers after results

A builder on a roof
Redrow boosted its new home sales by 8% in the last 10 weeks

Brokers were queuing up to talk about Redrow plc (LON:RDW) following Tuesday’s upbeat results from the housebuilder, although they stuck with their recommendations.

Redrow reported a 23% rise in profits to a record £250mln on a 20% increase in annual revenue to £1.38bn after an 8% lift in new home sales in the last 10 weeks.

Jefferies International upgraded its pre-tax profit estimates for 2016/17 and 2017/18 by 13% and 1% respectively.

It also increased its price target on the stock to 515p from 496p beforehand, but kept its ‘buy’ recommendation.

“The driver of the growth in 2016/17 is better sales rates and higher margin than we previously had thought possible,” the broker said in a note.

Barclays also increased its target price by 19% to 431.8p as well as its forecasts and said Redrow remained its top pick among UK housebuilders.

Deutsche Bank also increased its price target on Redrow slightly to 497p, but kept its ‘hold’ advice.

Peel Hunt, which is a buyer of the stock, left its price target unchanged at 555p.

Elsewhere, Peel Hunt upgraded its price target on PureTech Health Plc (LON:PRTC) to 238p from 220p after half-year results from the biotech in which it reported significant progress across more than 20 clinical studies and financings for its various businesses.

The broker, which has a ‘buy’ recommendation on the stock, said: “We continue to like PureTech for its majority-owned, multiple-shots-on-goal approach combined with its focus on intrinsically safe technologies.”

Own-brand household product maker McBride plc (LON:MCB) got price target boosts from Peel Hunt and Investec after it posted higher annual profits and revenue, to 185p and 210p respectively.

Shares in tour operator TUI AG (LON:TUI) fell slightly despite a price target upgrade to 1170p from JP Morgan Cazenove, which kept its ‘overweight’ rating.

Phil-Waller.jpg


Register here to be notified of future RDW Company articles

No investment advice: The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use