Broker snap: Barratt remains sector pick, says Panmure Gordon

13th Jun 2011 12:25

There's still further to go in Barratt Developments' share price, claims Panmure Gordon, which raises its target price on the stock to 158p, from 147p.Despite a strong rally in the share price over the last half year, the broker said that the housebuilder remains its key sector pick and keeps its 'buy' rating on the stock.Panmure Gordon predicts a continuation of the stable market conditions seen in the year-to-date, and says that "[g]iven the positive ongoing developments at the business, we believe that investor confidence in its operations will continue to improve."On 11 May, the company announced that it had completed a debt refinancing which will provide around £1bn of committed facilities up until May 2015, though some facilities will be available through to 2021. The broker said that the increase in the target price reflects this.---BC