ANALYST VIEWS: CAN BARRATT BUILD ON ITS STRONG RESULTS?
ROBIN HARDY | PEEL HUNT
Barratt has risen 50 per cent in less than six weeks even though little has changed in its expected trading patterns and despite it making still unacceptably low returns. It risks being a case of better to travel than to arrive and we would now advise investors to carve out gains or switch into stocks that have lagged.
KEITH BOWMAN | HARGREAVES LANDSDOWN
Current stability in the housing market provides a platform for potential further growth. Debt across the industry has been cut, reducing financing costs, whilst the outlook for interest rates has, if anything turned in the industry’s favour. For now, market consensus opinion continues to denote a buy.
RACHEL WARING | PANMURE GORDON
Barratt’s interim results are ahead of expectations and the group has reported a strong start to second half trading. Although the shares have enjoyed a fantastic performance already in 2012 (up 40 per cent), we still believe that there is further to go. We maintain our buy recommendation.