Canaccord Genuity lowers price target on Vistry Group despite 'good progress'
Analysts at Canaccord Genuity slightly lowered their target price on British housebuilder Vistry Group from 1,560.0p to 1,530.0p on Monday but said the firm's recent results were "testament to the good progress" it had made in re-positioning and turning around Bovis Homes over the last few years.
Canaccord said recent trading had been "encouraging" with comments made by the group being consistent with what it had recently heard from peers.
"Clearly the attention now turns to the integration of the recently acquired businesses," said the analysts.
The Canadian bank stated that integration seemed to be "progressing well" but noted that there was more work to be done, particularly in house-building.
"We continue to believe that the acquisition was sensible, and good timing in retrospect given the general election outcome. The medium-term investment case remains a positive one with increased scale and the benefit of the synergies to come through in the housebuilding business and attractive growth prospects in the Vistry Partnerships business."
Over the medium term, Canaccord said Vistry's balance sheet should also be in sound shape, supported by good cash generation of the larger group.
"After the recent share price falls, valuation looks more attractive, assuming macro conditions are not about to be jolted by the coronavirus-related issues. We tweak our price target down to 1530p (from 1560p) and retain our 'buy' rating."