21st August 2014
Confidence is growing in Taylor Wimpey as analysts at The Share Centre upgrade their recommendation on the house-builder’s shares to a ‘buy’.
While its stock is off by 10% over the past six months, it has firmed by 8% in the past three. But the market appears to be seeing an opportunity as the broker consensus, according to Digital look, is pointing towards a ‘strong buy’ with Deutsche and Jeffries among the firms who have recently issued positive notes on the FTSE 250 constituent.
Commenting on the upgrade, Sheridan Admans investment research manager at The Share Centre said: “As Taylor Wimpey focuses on delivering a strategy which it looks set to achieve, coupled with improving UK economics and emphasis on returning capital to investors, we are adding the stock to our ‘buy’ list. Like several house builders Taylor Wimpey looks good value on a number of valuation metrics at present.”
The group’s interim results showed the firm is making progress towards meeting its medium term targets noted Admans.
He added: “Performance in the period has resulted in Taylor Wimpey increase its capital returned to shareholders by £50m to £250m. This should boost the income yield to around 7%. However, investors should note this level of income can’t be relied on as it includes a return of capital and the stock is more suitable for those seeking growth.”