Barratt Developments (LON:BDEV) share price has climbed higher this Thursday as Canaccord Genuity lifted its valuation on the company. The move followed the blue-chip housebuilder’s annual results yesterday.
As of 14:56 BST, Barratt’s share price had climbed 1.10 percent to 606.20p. The shares are outperforming the broader UK market, with the benchmark FTSE 100 index having fallen into the red and currently standing 0.74 percent lower at 7,256.95 points.
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Canaccord lifts Barratt’s price target
Canaccord Genuity lifted its target on Barratt Developments’ share price from 620.0p to 660.0p today. Sharecast quoted the broker as commenting that the blue-chip housebuilder was ‘delivering well,’ with management doing ‘a good job’ of structurally improving margins as well as reducing its use of land creditors as the land market continues to support target margins.
The broker, however, said that the key issue facing Barratt was whether or not sales rates would continue to hold up against the current macro and political backdrop. The comments came after the blue-chip housebuilder posted a drop in revenue for the year ended June 30.
“Valuation now looks less compelling relative to the sector but we continue to see attractive absolute value supported by a good dividend yield and balance sheet,” Canaccord concluded, as it maintained its ‘buy’ rating on the shares.
Other analysts on FTSE 100 housebuilder
Citywire meanwhile quoted Interactive Investor’s analyst Richard Hunter as commenting yesterday that Barratt was in ‘rude health’. He elaborated that “similar to the UK economy itself, the shares of the company have been resilient and have made some progress”.
“The market consensus of the shares as a “buy” is testament to the company’s positioning ahead of the rocky road ahead,” he pointed out.
According to MarketBeat, the blue-chip housebuilder currently has a consensus ‘buy’ rating, while the average target on the Barratt share price stands at 656.20p.