Citi cuts Taylor Wimpey stock price target to GBP1.50

Published 28/02/2025, 09:26
Citi cuts Taylor Wimpey stock price target to GBP1.50

On Friday, Citi analyst Ami Galla revised the price target for Taylor Wimpey (LON:TW) Plc (TW/:LN) (OTC: TWODF), a leading UK homebuilding company, to GBP1.50 from the previous target of GBP1.57. Despite the reduction, the firm maintained its Buy rating on the stock.

The adjustment followed Taylor Wimpey’s announcement of its full-year 2024 results, which showed a profit before tax (PBT) of approximately £419 million, aligning with market predictions. The company has experienced a strong start to the spring selling season, with a private sales rate in the first eight weeks up to February 23 showing a 12% increase to 0.75 units without any bulk sales.

Taylor Wimpey reported an incremental improvement in market pricing since the beginning of the year, with current pricing remaining flat year-over-year, compared to a 0.5% discount in the year-end 2024 order book. The total order book stands at 8,021 homes, an 8% increase, or £2.3 billion, up 16%, providing coverage of over 50% for its 2025 volume targets.

The company anticipates low single-digit build cost inflation for 2025 and remains on track to deliver operational performance in line with market expectations. The consensus for operational profit is around £444 million, with UK completions expected to be in the range of 10,400 to 10,800 units, including a mix of approximately 45% from its H125 housing segment. The H125 margin reflects the lower underlying pricing in the year-end order book. Taylor Wimpey’s financial and operational outlook appears to be steady as it progresses towards its goals for 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.