Barratt Redrow PLC (LSE:BTRW) has received a show of support from JP Morgan, which attributes its sector bottom performance this year to investors waiting on the sidelines for the closing of the Redrow acquisition.
Now complete, Barratt’s cost-saving potential (at least £90 million) as well as revenue synergies (not quantified) should come to the fore suggests the US bank.
With the sector currently seeing more favourable trends, driven by Government reform on the supply side as well as easing affordability, Barratt Redrow looks a good way to play the UK Housing recovery theme, JP Morgan suggests.
Overweight with a target price now 600p (previously 560p) is the investment view.