Brokers calling Taylor Wimpey a ‘buy’ as the house builder enters 2015 with record order book

12th January 2015


A flurry of analysts have thrown their support behind house builder Taylor Wimpey which has declared it has started 2015 in an “excellent position.”

The UK-based firm, which has with subsidiaries in North America and Spain, in its trading update today announced that total completions for 2014 rose by 6% with average prices rising by 12% to £213,000 and that the company has entered 2015 with a record order book worth almost £1.4bn.

As a result brokers at JP Morgan Casenove, Citigroup, Deutsche and Liberium Capital have all issued positive notes on the firm leaving the shares, which are up 4% over one year and by 14% over the past three months, in “strong buy” territory according to Digital Look.

In statement Taylor Wimpey chief executive Pete Redfern, commented: “Taylor Wimpey starts the year in an excellent position and whilst the global economic outlook is uncertain, in the UK we have an environment of sensible mortgage regulation and a reduced risk of UK interest rate increases in the near term.“

Brokers at The Share Centre are also backing the stock. Helal Miah, investment research analyst at firm said ” It believes it is currently at its optimal size in terms of the amount of plots it has acquired and owns. Furthermore, the group expects to improve the operation margin by 400 basis points and currently sit on a cash balance of £113m.

“Although 2015 may not be as successful as 2014, we recommend Taylor Wimpey as a ‘buy’ for medium risk investors. The expectation of a moderation in the housing market should lead to a more sustainable growth rate, which will still be supported by government policies and the demand for housing.”

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