Taylor Wimpey stock under pressure as estimates lowered, but upside potential remains

Published 17/01/2025, 10:54
Taylor Wimpey stock under pressure as estimates lowered, but upside potential remains

On Friday, RBC Capital Markets adjusted its outlook on Taylor Wimpey (LON:TW) Plc (TW/:LN) (OTC: TWODF), reducing the price target to £1.55 from the previous £1.75. Despite the cut, the firm maintained an Outperform rating on the homebuilding company's stock.

In a statement released after Taylor Wimpey's analyst call, RBC Capital's analyst expressed a cautious stance, noting that the company's perspective seemed more pessimistic than optimistic. As a result of internal discussions, RBC Capital has revised its estimates for Taylor Wimpey for the year 2025 and beyond, anticipating that future estimate risks may now lean more towards positive outcomes.

The analyst's commentary highlighted the current state of the share price, which seemed to be underperforming on Friday. Investors are likely looking forward to the company's full-year 2024 results, which are scheduled to be announced on February 27, with hopes that the company's performance will show improvement.

Taylor Wimpey's analyst call appeared to have a significant impact on RBC Capital's expectations, prompting a reassessment of the company's future financial projections. The decision to lower the price target reflects a more conservative outlook, yet the Outperform rating suggests that RBC Capital still sees potential in the stock.

Investors will be closely monitoring Taylor Wimpey's progress as the February 27 report date approaches, which will provide further insights into the company's financial health and potentially influence market sentiment.

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

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