Investment bank Liberum has added UK housebuilders Crest Nicholson PLC (LSE:CRST) and Barratt Developments PLC (LSE:BDEV) to model portfolios, based on its optimistic stance toward the market.
Crest Nicholson replaced Big Yellow Group on Liberum's high-quality, low-valued model portfolio.
Barratt appeared on Liberum’s model consisting of cheap UK stocks for highly profitable companies meanwhile.
Liberum tipped both a buy, referring to an early June note where it provided an optimistic outlook for the UK’s housing sector.
Crest Nicholson’s core market in the south-east is the UK’s most undersupplied, Liberum said, standing the builder in good stead given “good margin progress” as building costs fall.
Barratt was tipped as Liberum’s “preferred large-cap stock” though, with an experienced management team and strong sales division likely to prove useful during the “challenging times”.