‘NO SURPRISES IN THE FIGURES’
Analyst Robin Hardy at Shore Capital said there were no surprises in Barratt’s figures.
“It is good to see Barratt aiming for higher margins and it does need to do this because it has been so far out of line with the peers and having lower margins has made it more vulnerable to falling house prices,” he said.
“The latter is not going to change in the near term and we see this and the true position of the balance sheet as making Barratt riskier than its peers. However, stepping up on growth could be positive and has the scope to allow us to consider a higher fair value than our current bottom-ofthe range estimate of 520p.”