SELL - TAYLOR WIMPEY (TW.)
Taylor Wimpey plc is a residential developer. The Company operates at a local level from 24 regional businesses across the United Kingdom, and it has operations in Spain.
Fundamentals
Brexit uncertainties continue to undermine the performance of certain UK housebuilders. The ongoing political threat is sending shares in Taylor Wimpey lower. The latest set of results showed that first half operating profits were down 9.4%, which reflects higher build costs and tougher standards. House prices are stagnating, particularly in London and the South East where Taylor Wimpey are significantly exposed. Tougher times potentially remain ahead.
Best Broker Target Price: 200p (Berenberg Bank 05/03/2019)
Worst Broker Target Price: 140p (Peel Hunt 10/12/2018)
Technical Analysis
Taylor Wimpey has been unable to reach the heights it saw in the aftermath of the Brexit result in 2017 and since then has traded in a sequence of lower highs and lower lows. The break of support seen this week at 153.8p suggest we are going to see a continuation lower in the short term. The immediate downside target is at the December 2018 lows of 128p, then below that we are targeting the Brexit vote lows of 110p.
Recommendation: Sell between 140-160p
Stop: 180p
Target: 128p & 110p
Taylor Wimpey plc is a residential developer. The Company operates at a local level from 24 regional businesses across the United Kingdom, and it has operations in Spain.
Fundamentals
Brexit uncertainties continue to undermine the performance of certain UK housebuilders. The ongoing political threat is sending shares in Taylor Wimpey lower. The latest set of results showed that first half operating profits were down 9.4%, which reflects higher build costs and tougher standards. House prices are stagnating, particularly in London and the South East where Taylor Wimpey are significantly exposed. Tougher times potentially remain ahead.
Best Broker Target Price: 200p (Berenberg Bank 05/03/2019)
Worst Broker Target Price: 140p (Peel Hunt 10/12/2018)
Technical Analysis
Taylor Wimpey has been unable to reach the heights it saw in the aftermath of the Brexit result in 2017 and since then has traded in a sequence of lower highs and lower lows. The break of support seen this week at 153.8p suggest we are going to see a continuation lower in the short term. The immediate downside target is at the December 2018 lows of 128p, then below that we are targeting the Brexit vote lows of 110p.
Recommendation: Sell between 140-160p
Stop: 180p
Target: 128p & 110p