Latest news with #AnthonyCodling
Business Insider
14 hours ago
- Business
- Business Insider
RBC Capital Remains a Buy on Bellway (BWY)
In a report released on June 10, Anthony Codling from RBC Capital maintained a Buy rating on Bellway (BWY – Research Report), with a price target of p3,600.00. The company's shares closed yesterday at p2,958.00. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Codling is a 5-star analyst with an average return of 10.3% and a 63.98% success rate. Codling covers the Consumer Cyclical sector, focusing on stocks such as Bellway, Vistry Group, and Crest Nicholson Holdings. Bellway has an analyst consensus of Strong Buy, with a price target consensus of p3,098.60, a 4.75% upside from current levels. In a report released yesterday, Citi also maintained a Buy rating on the stock with a £31.00 price target.
Business Mayor
14-05-2025
- Business
- Business Mayor
Home sales rise at Vistry Group on falling rates – but questions raised over social housing focus
Updated: 16:37 BST, 14 May 2025 Home sales have ticked up at Vistry Group in recent weeks, as expected interest rate cuts led to lower mortgage costs. However, an analyst has raised concerns that a lack of clarity on social housing funding from the Government may harm the firm, which builds many of its homes in partnership with organisations such as housing associations. The housebuilder, formed in 2020 from a merger of Bovis Homes and Linden Homes, said it had sold 0.91 homes per week at each of its developments since the start of 2025, and 1.32 in the last eight weeks. This is up from 0.59 in the period between January and 26 March, when the company was affected by a subdued volume of partner-funded transactions. This is where private sector developers build homes on behalf of other organisations, often social housing to be used by housing associations. Vistry noted partner-funded activity had remained at a 'relatively low level' because of 'investment constraints' while funding for new affordable homes waits to become available. However, the firm said sales to home buyers had improved as mortgage lenders have broadened their product ranges and slashed borrowing costs in anticipation of further expected cuts to the Bank of England base rate. Britain's central bank has reduced interest rates by 0.25 percentage points on four occasions since August 2024 in response to decreasing inflation, with the latest cut occurring last Thursday and taking the base rate to 4.25 per cent. Since then, most major banks have lowered their mortgage rates. Santander has announced the launch of multiple new mortgage deals with sub-4 per cent rates. Meanwhile, Barclays introduced the market's lowest five-year fixed rate deal for homebuyers purchasing with a 40 per cent deposit. Vistry forecasts both open market and partner-funded home volumes for 2025 to be at a 'similar level' to the prior year. An analyst has raised concerns that unclear government funding plans for social and affordable housing could negatively affect firms like Vistry, which focus on 'partner-funded' developments. Anthony Codling, managing director at RBC Capital Markets, said: 'Until the Government announces a significant funding program for social and affordable housing, Vistry may find itself in the wrong place at the wrong time whilst other housebuilders make hay in the warmest spring on record. 'The trading statement is trying to give the impression of 'everything is fine and there is nothing to see here.' 'But, the statement points to continued weakness in the partner-funded model, the market Vistry is focused on, whereas the market it isn't focused on, traditional housing, is doing well. 'Until the Government announce a significant funding program for social and affordable housing, Vistry may find itself in the wrong place at the wrong time whilst other housebuilders make hay in the warmest spring on record.' In late March, Chancellor Rachel Reeves and Deputy Prime Minister Angela Rayner unveiled an additional £2billion of cash towards building up to 18,000 new affordable homes. It said the properties would begin construction by March 2027 and be finished by the end of this Parliament in June 2029. Additional information on how the funding will be allocated is expected following next month's spending review. The Government has promised to deliver 1.5 million homes over five years, partly by allowing building on lower-quality' grey belt' land and mandatory housing targets for councils. Vistry Group shares were 0.9 per cent lower at 627.4p on late Wednesday afternoon, meaning their value has approximately halved in the past year. Easy investing and ready-made portfolios Free fund dealing and investment ideas Flat-fee investing from £4.99 per month Account and trading fee-free ETF investing Free share dealing and no account fee Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence. Compare the best investing account for you
Daily Mail
30-04-2025
- Business
- Daily Mail
Taylor Wimpey margins under pressure as homebuilder costs rise
Housebuilder Taylor Wimpey expects margins to come under pressure from lower selling prices and rising costs this year, despite demand holding up well over the spring. The housebuilder still anticipates completing 10,400 to 10,800 properties this year, excluding joint ventures, with around 45 per cent of these homes being delivered in the first half of 2025. It also expects operating profits of £444million even though first-half operating margins are set to be lower. Taylor Wimpey blamed the effects of underlying pricing in its order book at the start of the year and a modest return of build cost inflation. Despite current economic volatility and affordability pressures, the High Wycombe-based business said there remained 'good quality customer interest' for its homes. Its weekly net private sales rate for the year to 27 April was 0.76 per outlet, compared to 0.70 in 2024. Consequently, the company's order book totalled over £2.3billion and 8,153 houses as of Sunday, versus £2.1billion and 7,742 properties at the same time last year. Jennie Daly, chief executive of Taylor Wimpey, said: 'The Spring selling season has progressed in line with expectations, with good levels of customer demand reflected in our sales rate. 'Notwithstanding the wider macroeconomic backdrop, affordability is improving with lenders remaining committed to the housing market, albeit first-time buyers continue to experience some challenges.' Average UK house prices dipped by 0.6 per cent to £270,752 in April, according to figures released by Nationwide. It follows changes to stamp duty rates at the beginning of the month, with the zero threshold halving to £125,000 and the first-time buyers' threshold dropping from £425,000 to £300,000. All major British lenders now offer fixed-rate mortgage rate deals of under 4 per cent in expectation the Bank of England will continue cutting base rate. The UK base rate currently stands at 4.5 per cent after being cut by 0.25 percentage points in February. Financial markets currently point to three more cuts of the same size this year, taking base rate to 3.75 per cent at the end of 2025. Taylor Wimpey told investors: 'We operate in an attractive market with significant underlying demand for new homes. 'We have set the business up to deliver sustained growth with a high-quality landbank, strong balance sheet and experienced teams.' Anthony Codling, head of European housing and building materials research at RBC Capital Markets, remarked: 'As wages continue to grow and the expectation is for mortgage rates to fall, the outlook for Taylor Wimpey looks rosy.' Taylor Wimpey shares were 1.8 per cent lower at 116.3p on Wednesday morning, making them one of the FTSE 100 Index's ten worst performers.
