Update shared on04 Sep 2025
Due to ongoing macroeconomic uncertainty, subdued UK housing market activity, and near-term margin pressures, analysts have trimmed earnings forecasts and taken a more cautious outlook, resulting in the consensus analyst price target for Barratt Redrow remaining steady at £5.21.
Analyst Commentary
- Ongoing macroeconomic uncertainty and subdued UK housing market activity have driven price target reductions.
- Cautious outlook on demand due to continued elevated mortgage rates and affordability constraints for potential buyers.
- Bullish analysts retain positive longer-term views, citing strong balance sheet and robust land pipeline, even as near-term earnings expectations are revised down.
- Margin pressures from build cost inflation and competitive market dynamics necessitate adjustments to revenue and profit forecasts.
- Improvement in forward order books and management’s cost discipline are acknowledged as supportive factors, tempering the degree of price target cuts.
What's in the News
- Barratt Redrow plc announces a share repurchase program of up to £100 million, valid until June 30, 2026.
- The Board of Directors has authorized the buyback plan.
Valuation Changes
Summary of Valuation Changes for Barratt Redrow
- The Consensus Analyst Price Target remained effectively unchanged, at £5.21.
- The Future P/E for Barratt Redrow remained effectively unchanged, moving only marginally from 16.15x to 16.32x.
- The Discount Rate for Barratt Redrow remained effectively unchanged, at 8.44%.
Disclaimer
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