Gold prices near 3-week lows as stronger dollar, trade progress weigh
On Tuesday, Barclays (LON:BARC) analysts revised their stance on Taylor Wimpey (LON:TW) Plc (TW/:LN) (OTC: TWODF), downgrading the stock from 'Overweight' to 'Equalweight' and reducing the price target to GBP1.42 from the previous target of GBP1.74.
The downgrade was influenced by a weaker outlets position in the third quarter, prompting Barclays to lower their earnings expectations for the company in 2025. This adjustment places their earnings per share (EPS) estimate around 10% below the market consensus.
Barclays highlighted concerns regarding Taylor Wimpey's volume growth as a potential near-term overhang on the stock. In the third quarter of 2024, the company did not provide a clear outlook for 2025, and its management has a history of not offering precise guidance on outlets. This lack of specificity is seen to introduce some risk to earnings in the near term.
Despite the downgrade, Barclays acknowledged that if outlet growth turns out to be high in the first half of the year, their concerns might be proven unnecessary. The firm's cautious stance is based on the available information, which suggests potential challenges in the company's performance.
The reduction in the price target to GBP1.42 from GBP1.74 reflects the new earnings forecast and the uncertainties surrounding the company's growth prospects. Taylor Wimpey's stock performance in the coming months may be influenced by its ability to address these growth concerns and provide clearer guidance to investors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.