Bank of America downgrades Taylor Wimpey to ‘neutral’, sees near-term headwinds.
Bank of America downgraded Taylor Wimpey to ‘neutral’ from ‘buy’ on Tuesday and cut the price target 13% to 105p, pointing to near-term headwinds.
Taylor Wimpey
02 September 2025 09:06:22
Source: Sharecast
"We still like their quality land bank, high presence among first time buyers and we believe the mid-term growth story is intact driven by a lower rate/planning reform," it said.
"However, we see some headwinds in the near term for this name: a slower-than-peers’ progress in outlet opening, a softening 2Q market condition, fire safety issue only to be fixed by 2030, dividend payment is not comfortably covered, and consensus on FY26 margin expansion is optimistic, in our view."
Bank of America said Taylor Wimpey’s 2026E multiple is at circa 0.8x P/B and 11x P/E. This is low but is largely in line with what the one-year forward return on equity is implying at 0.9x and 11.8x respectively, it said.
Halifax is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.
