Market's view on Vistry Grp
Published on April 2024
- JPMorgan upgraded Vistry’s rating from ‘underweight’ to ‘overweight’ and increased the price target from 580 pence to 1380 pence.
- Housing associations in England, including Southern Housing, are halting new developments for 2024 and 2025 due to high interest rates affecting their funding, which relies heavily on private debt.
- Stock watchers discussed trading strategies around stop loss settings and trade sizes in response to volatile share prices.
- Vistry Group announced new partnerships with Abri and Clarion Housing Association to deliver 1,900 mixed tenure homes, boosting its high-growth, capital light partnerships model.
- There were mixed reactions to the news of no dividend, with some watchers selling shares to realise gains, while others appreciated the capital growth.
- Future share buybacks are anticipated to be more costly.
- Brokers, including RBC, revised their targets and ratings for Vistry, indicating improved performance expectations.
- Vistry Group’s FY23 financial results showed resilience with significant revenue growth and a solid forward sales position, prompting recommendations for buying shares.
- The discussion included speculation on the housing market’s recovery and its alignment with the share price recovery.
- Some stock watchers are considering taking profits due to a heavy investment in the stock, despite the market’s overall positive outlook.