Proactive’s preview on Taylor Wimpey PLC (LSE:TW.) focused on the wholesale sell-off across the house building sector as heralding more difficult times for the housing market.
What came out in that analysis was TW’s punishment compared with the wider sector.
The company’s shares are off 32% in the year to date, which was a third more than the average re-basement.
So, it was of little surprise to those in the know that TW shares sprang to attention on Wednesday morning after it guided consensus profit forecasts higher – albeit by just 2-3%.
The shares jumped 4.7% on the back of the news.
In the aftermath, UBS is going for a 2% tweak to its 2022 earnings forecast, while veteran Clyde Lewis at Peel Hunt restated his 160p price target and ‘buy’ recommendation.
The stock, currently changing hands for 126p, is trading at a significant discount to Lewis’ valuation.
After the rather harsh sell-off in the year-to-date, TW may offer a value opportunity with the added fillip of a 9% dividend yield.