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Barratt Developments' share price weakness presents a good buying opportunity

Published: 13:14 21 Feb 2018 GMT

Barratt home
Numis still prefers the faster-growing mid-cap builders to Barratt

In-line interims from the UK's biggest house-builder, Barratt Developments PLC (LON:BDEV) were enough to persuade Numis Securities to upgrade the stock to 'add'.

It was not so much the numbers for the second half of 2017 – the first part of Barratt's financial year – that changed Numis's mind as the 14% share price fall thus far in 2017, which has created a good buying opportunity.

READ Barratt Developments still seeing good consumer demand

The interims were in line with Numis's expectations, so the broker is leaving its full-year estimates unchanged but with confirmation that “the all-important spring selling is gathering strength” there is a hint of the prospect of Barratt putting its foot on the accelerator, though Numis still contends that the faster growing mid-cap builders offer the best prospects. 

“In our view, these positive comments about current trading should be well received as we are now more progressed through the all-important spring selling season and shows that the new-build sector continues to perform well,” Numis said.

Numis's price target is 667p; shares in Barratt were down 1.1% at 556p in lunchtime trading.

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