MARKET TALK: HSBC Initiates UK House Builders

9th Jul 2010 07:23

0623 GMT [Dow Jones] HSBC initiates coverage of UK house builders. Expects 5% to 35% falls in the share prices of the five UK house builders with the biggest exposure to northern regions based on its construction team's forecast of a 5% regionally-weighted contraction in house prices in '10-'11. Sees the long-term recovery of house-builder stocks restrained by limited affordability and restricted mortgage availability. Starts Berkeley Group (BKG.LN) and Bovis Homes (BVS.LN) at neutral with 823p and 374p targets, respectively. Starts Barratt Developments (BDEV.LN), Persimmon (PSN.LN) and Redrow (RDW.LN) at underweight with 61p, 278p and 107p targets, respectively. Also starts Taylor Wimpey (TW.LN) and Bellway (BWY.LN) at underweight with 21p and 525p targets. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 09, 2010 02:23 ET (06:23 GMT)