Redrow all the rage with brokers after results

Housebuilder reported a 23% rise in profits to a record £250mln

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.

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