Deutsche Bank has downgraded Vistry Group PLC (LSE:VTY), the FTSE 250 housebuilder, from 'buy' to 'hold' and cut its target price by 25% to 600p following the announced retirement of chairman and chief executive Greg Fitzgerald.
Analyst Chris Millington said full-year 2025 results were in line with Deutsche Bank's forecasts, but that Fitzgerald's planned departure was the most significant element of the company's announcement.
The bank also reduced its profit forecasts after Vistry flagged a greater focus on cash generation and increased use of incentives, which is expected to compress margins in the coming year.
Deutsche's profit before tax forecasts for 2026 and 2027 fell by 13% and 23%, respectively, with the revised figures pointing to only modest year-on-year growth.
The new 600p target price, down from 803p, equates to ten times the bank's 2026 earnings estimate.
Deutsche said it continued to see long-term attractions in Vistry's business model, but warned that management uncertainty was likely to weigh on the shares in the near term.
In late morning trading, the stock was up 3.5% 485.74p.