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Prices & Quotes - UK Markets - Taylor Wimpey (TW.)

Risk Warning The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Share Price:
Up 166.25p
Change Today:
2.60p
Market Cap:
6,062m
Sector:
Household Goods & Home Construction

Liberum upgrades Taylor Wimpey to 'buy', upbeat on sector

By Michele Maatouk

Date: Monday 07 Jun 2021

LONDON (ShareCast) - (Sharecast News) - Liberum struck an upbeat note on the UK housebuilding sector on Monday, upgrading its stance on shares of Taylor Wimpey as it said recent updates confirmed trading has strengthened in April/May and house price inflation has spread to the new build sector.
The broker upgraded Taylor Wimpey to 'buy' from 'hold' and lifted the price target to 185p from 180p to reflect the improved outlook.

"It is the sector performance laggard (down 24% since February 2020 against the sector down 13%) and offers a compelling valuation on 1.46x 2021E book given its returns and distributions," Liberum said. "For 2021E we estimate a return on equity (post-tax) of 14% and a 5% dividend yield (rising to 8% in 2022E)."

The shares appear to have underperformed as a result of fire safety cost concerns, which the broker reckons are overdone. "Its 40m cladding provision taken in 2020 and the 125m fire safety provision taken in 2021 equates to around 4% of its 2020 net assets," it noted.

Liberum said buy-rated Persimmon remains its preferred large-cap play in the sector, but it finds value more widely in the smaller housebuilders, which offer more attractive valuations.

"We favour housebuilders with a proven track record of volume growth and prefer northern exposure, low price points and strong balance sheets."

Its top picks are Bellway, MJ Gleeson, Redrow and Vistry, all of which are rated 'buy'.

"The sector has outperformed and now trades at 1.8x 12m forward P/TNAV, but it remains below its pre-Covid-19 multiple of 2.1x," Liberum said. "Further upgrades should mean the sector trades closer to the pre-Covid-19 valuation."

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

Taylor Wimpey Market Data

Currency UK Pounds
Price 166.25p
Change Today 2.60p
52 Week High 191.70p
52 Week Low 99.18p
Volume 8,474,119
Shares Issued 3,646.48m
Market Cap 6,062m

Performance Indicators

Compare performance with the sector and the market.

Key
Vs Market
Vs Sector
Value
market
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sector
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  5. half sector star
Price Trend
market
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sector
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Income
market
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sector
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  5. empty sector
Growth
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sector
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Price Chg 6m
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P/E
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sector
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PEG
market
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  5. empty market
sector
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Dividend Yield
market
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sector
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  5. empty sector
EPS Growth
market
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sector
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Operating Margin
market
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  4. empty market
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sector
  1. full sector star
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  4. half sector star
  5. empty sector

What The Brokers Say

Strong Buy 16
Buy 2
Neutral 0
Sell 0
Strong Sell 0
Total 18
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Taylor Wimpey Dividends

  Latest Previous
  Final Interim
Ex-Div 01-Apr-21 03-Oct-19
Paid 14-May-21 08-Nov-19
Amount 4.14p 3.84p

Trades for 23-Jul-2021

Time Volume / Share Price
16:35 24,480 @ 166.25p
16:35 521 @ 166.25p
16:35 500 @ 166.25p
16:35 3,849,131 @ 166.25p
16:29 1,750 @ 165.95p

Taylor Wimpey Key Personnel

CEO Pete Redfern
Chair Irene Dorner