Broker snap: Barratt positives priced in

12th May 2010 11:22

KBC Peel Hunt is unimpressed with Barratt's claim it will make an underlying profit in the second half and calls today's rally a relief bounce.The average selling price during the six months to 30 June is up 15% on the prior year and will be at least 10% up for the full financial year, Barratt announced.Its predictions for debt of £500m by the year-end was about £50m better than expected, but KBC believes David Cameron's continual use of the word 'difficult' last night is worrying."While we would expect the house builders generally to reflect relief that the political position is resolved, the market will be mindful of the pressures ahead," it said.The public sector is widely expected to face mass redundancies in the not too distant future and, with 1 in 5 people working for the state, "cuts here will be material".KBC says sell.