skip to content

Market News

Broker views: Housebuilders and furniture

06 October 2017 14:13

Equity research analysts at Credit Suisse upgraded their investment rating on housebuilder Barratt Developments (LON:BDEV) to 'outperform' from 'neutral', believing the renewed focus on earnings margin will drive an 110bps increase in margins between FY17a-20e.

Specifically, the broker said: "We believe the Group now offers an attractive margin progression play and expect its renewed focus on driving EBIT margin will lead to a strong multiple re-rating as Group returns improve."

Credit Suisse lifted its earnings per share forecasts for 2018 and 2019 by 4% and 3%, respectively, and its target price to 702 pence per share (from 578 pence).

Elsewhere, Berenberg moderated its recommendation on DFS Furniture (LON:DFS) and moved to 'hold' rating (from 'buy') due to the lack of near-term catalysts and after highlighting that, while the UK upholstery market has recovered following a weak period from March to June, it remains in decline.

Despite the bank saying that DFS "is well positioned to both take market share and protect profitability" it added:

"In light of 'modest' profit growth guidance, near-term focus on balance sheet deleverage and tough comparatives in H1, we believe the shares offer little upside in the near term."

Target trimmed to 230 pence a share from 245 pence.

At 2:13pm:

(LON:BDEV) Barratt Developments PLC share price was +9.5p at 656p

(LON:DFS) DFS Furniture Plc share price was -5.25p at 210.25p

Story provided by StockMarketWire.com

Related Company: BDEV

Info Point:

To buy or sell shares call our Dealing Room on 0113 243 6941.

Too much jargon? Our glossary will help make sense of things.

Find out more about our Share Dealing Services.

Client Area Access

» Secure Login

» Not registered yet?

Aberdeen Ediston

Branch Finder

Redmayne-Bentley have High Street branches throughout the UK. Find your nearest branch.