This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Observations – For
Observations – Against
Technically the shares have made a solid breakout. The housebuilding sector is exposed to Brexit concerns but could benefit from a relief rally in the case of a Remain vote. The recent trading update had no mention of Brexit, with strong demand helped by low rates and government initiatives. In terms of interest rates, the Bank of England is unlikely to raise rates for a good while. The principal risk is an overheated UK property market.
Brokers are largely positive on the shares, with 50/50 Buy/Hold and no analysts having a sell rating. Note 73% of broker targets suggest upside from current levels and while consensus suggests just 7% upside to end-Dec highs, the latest update from JPMorgan suggests our 660p objective (+11%) and 2015 highs can be revisited.
Next Event: Trading Update, 13 July
Latest Broker 12-Month Consensus: 50% Buy, 60% Hold, 0% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | 3.1 | 9.7 | 1.9 | 1.9 | -0.7 | 65.7 | 84.2 | 416.8 | 432.0 |
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