LONDON (SHARECAST) - Taylor Wimpey’s trading statement was “just OK” and there seems little to ignite the share price now that the post Budget rally looks to be spent, says KBC Peel Hunt.
The housebuilder reports stable conditions in both UK and US over the past six months, but remains wary over prospects in both markets.
“We see troubles aplenty ahead in the USA and if this means that this operation cannot be sold, the recovery in the UK will continue to be held back,” reckons KBC.
“TW is struggling to convince on recovery and so will be destroying shareholders for some time and this needs to be reflected in a heavy discount to NAV. So, 30p share price versus 47p NAV is still our view of fair value.”
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