Taylor Wimpey PLC (LSE:TW.) shares slipped 5% after its half-year results, but UBS kept its 'buy' rating and a price target of 155p, implying around 50% upside from current levels.
The housebuilder’s first-half numbers were shaped by a further £222 million provision for fire safety works, including expanded cavity barrier repairs and cladding remediation.
Excluding these one-offs, the underlying outlook for the year remains steady, according to UBS.
Completions and revenue were slightly ahead of expectations, with 4,894 homes delivered (excluding joint ventures) and group sales up 2%.
Adjusted operating profit, including joint ventures, was £181 million, in line with forecasts, while reported profit included a £20 million one-off charge. The interim dividend was set at 4.67p per share.
Management is sticking to full-year guidance for operating profit and completions, pointing to a more profitable second half as new homes are delivered.
The order book remains healthy at 7,452 homes, with values up 4% year-on-year.
The shares fell 5.3p to 101.85p.