Taylor Wimpey stock upgraded to Buy with higher price target

  • Investing.com
Taylor Wimpey stock upgraded to Buy with higher price target

On Tuesday, Taylor Wimpey (LON: TW ) Plc. (LSE:TW/), also traded as OTC: TWODF, received an upgrade from a Hold to a Buy rating by CFRA, with a revised 12-month price target set at £1.60, up from the previous £1.50. The new price target suggests a forward P/E ratio of 16.0x for the year 2024, which is above the industry average of 14.7x. The upgrade reflects the firm's positive view on the company's strategically located landbanks.

Taylor Wimpey's first-quarter trading update for 2024, released up to April 21, showed an order book value at £2.09 billion with 7,686 homes, a decrease from the previous year's £2.38 billion and 8,576 homes. Despite the lower figures, the company's net private sales rate is a robust 0.73, with a cancellation rate of 13%, showing an improvement from the prior year's sales rate of 0.75 and cancellation rate of 15%.

The firm's analysis indicates that Taylor Wimpey's performance is consistent with expectations, noting a sequential improvement. The unchanged 2024 guidance, with a U.K. home completion target between 9,500 to 10,000 units, further supports this view.

Looking ahead, CFRA anticipates an improving outlook for Taylor Wimpey starting from 2025. The firm believes that the company will be in a strong position to leverage its high-quality landbanks. Additionally, it is expected that Taylor Wimpey will experience positive sentiments related to the forthcoming U.K. general election.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or