MARKET TALK: RBS Reviews UK Housebuilders

28th Jul 2010 10:38

0938 GMT [Dow Jones] Royal Bank of Scotland downgrades Barratt Developments (BDEV.LN) to hold from buy and cuts target price to 110p from 162p. Says while higher land investment intensity will be validated if trading stability holds, it adds an extra layer of volatility in the event of macro weakness. Brokerage also downgrades Persimmon (PSN.LN) to hold from buy and cuts target price to 380p from 580p. Says 1H'10 trends have reinforced RBS's view that Persimmon may outperform consensus on pretax profit, net debt and NAV progression in FY'10. However, notes concerns over trading stability thereafter "and with our price target now weighted to a bear-case possibility, we downgrade to hold." RBS cuts Bovis Homes (BVS.LN) target price to 340p from 449p, Redrow (RDW.LN) target to 100p from 140p and Bellway (BWY.LN) to 640p from 870p, keeping at hold. Cuts Berkeley Group (BKG.LN) target to 955p from 1000p, Galliford Try (GFRD.LN) to 450p from 457p and Taylor Wimpey (TW.LN) target to 36p from 52p, keeping all at buy. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 28, 2010 05:38 ET (09:38 GMT)