- Barratt Redrow
- 27 February 2025 11:03:40
Source: Sharecast
It said Barratt's interims set a positive tone, with the group saying that current trading was solid and guiding to adjusted FY25 pre-tax profit towards the top of consensus.
"We have increased our FY25 PBT forecast by 5%, but leave outer years broadly unchanged," the bank said.
"Medium-term guidance suggests a strong rebuild of profits in future years, supported by a recovering outlet profile and synergies from the Redrow deal.
"However, medium-term return targets suggest meaningfully lower return on equity than pre-Covid levels - in keeping with the wider industry."
Deutsche said Barratt is trading broadly in line with current NTA, suggesting little recovery is being priced in.
It said its unchanged target price of 536p equates to 1.16x FY27 P/NTA and points to 24% potential upside, "therefore after the 23% fall in the share price since August 24, we move from hold to buy".