This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
Bullish breakout amid Brexit deal hopes as well as the government’s Help to Buy scheme being extended by two years to 2023, albeit on less generous terms. Sector peers also bouncing back form recent sell-off, despite slower UK House Price data this morning.
Risks to Barratt Developments include a poor monthly housing data, Bank of England interest rate hike leading to reduced demand for mortgages, a bigger UK housing market decline, Brexit uncertainty, an equity market drop that favours more defensive shares and, of course, broker downgrades.
Brokers/analysts are bullish on the shares with only 5% suggesting Sell. This is supported by 83% of broker price targets suggesting upside from current levels, to a consensus target of 649p, well above our target of revisiting September highs of 578p.
Next Event: Trading Update 11 Jan
Latest Broker 12-Month Consensus: 68% Buy, 26% Hold, 5% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr | |
| Perf % | 8.4 | -5.1 | 0.8 | -3.6 | -17.8 | 18.6 | -12.1 | 28.5 | 60.6 |
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Prepared by Michael van Dulken, Head of Research