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.
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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.