Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Can Barratt Keep Building On 2019 Rebound?

Published 04/02/2019, 10:07
Updated 21/10/2020, 09:15

2018 wasn’t a fun time for house builders, and Barratt was no exception. Starting at £6.53, the stock just kept falling, a period of respite over summer meaning little as it closed out the year at £4.61, a smidge above December’s 2 year-plus low.

Barratt Developments PLC

Since 2019 began, however, it has rather aggressively rallied, lifting back to a current trading price, and near 3 month high, of £5.49.

The firm’s last update came in October, alongside its AGM, and showed that broadly Barratt’s market woes were due to sector-wide fears rather than any specific issues of its own. For the first 15 weeks of its financial year net private reservations per active outlet per average week were at 0.72, down on the previous year’s 0.74, but with a 12.4% rise in total forward sales to £3.15 billion on a 5.1% increase in units to 12,903.

Commenting on Barratt’s performance, CEO David Thomas said that the company had ‘started the new financial year in a strong position, with a good sales rate, healthy forward order book and customer demand supported by an attractive lending environment.’

Investors will be looking for a similarly upbeat tone on Wednesday, especially after a positive rating by Berenberg back in January, as well as a fuller idea of what they can expect for the year as a whole. Any mention of Brexit and its associated anxieties may also be headline fodder, considering reports of stagnating house price growth in the UK.

Barratt Developments PLC (LON:BDEV) has a consensus rating of ‘Buy’ alongside an average target price of £6.58.

Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.

In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved."

Original post

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.