Wimpey (George) - The UKs Leading Housebuilder

Another sector upgrade. Citigroup yesterday, UBS today. WMPY price target raised from 425p to 480p. Too low in my view but in the right direction.

Nice move on house prices too.

Bellway, Redrow, Wilson Bowden upped to 'buy' at UBS in sector review
20 December 2005
AFX International Focus

LONDON (AFX) - Shares in UK housebuilders were active in opening deals, as UBS raised its target prices across the sector and upgraded Bellway PLC, Redrow Group PLC and Wilson Bowden PLC to 'buy' from 'neutral', traders said.

UBS maintained its 'overweight' stance on the UK housebuilding sector going into 2006 as consolidation and land bank shortages have raised the sector's return on capital employed.

Looking at the individual stocks, UBS raised its price target on Barratt Developments PLC ('neutral') to 980 pence from 840; on Bellway to 1,235 from 995; on Bovis Homes Group PLC ('neutral') to 715 pence from 660; on Crest Nicholson PLC ('neutral') to 490 from 435; on McCarthy & Stone PLC ('neutral') to 700 from 645; Persimmon PLC ('buy') to 1,442 from 1,310; Redrow to 590 from 475; Taylor Woodrow PLC ('neutral') to 390 from 340; Wilson Bowden to 1,625 from 1,186 and Wimpey PLC ('neutral') to 480 from 425.

Also attracting attention to the sector today was news that house prices in the UK during November rose for the first time in 15 months.

In its monthly survey, the Royal Institution of Chartered Surveyors said

4 pct more chartered surveyors reported rises in prices than falls in November from the previous three months, against the -8 pct balance in October.

That was the first increase since August 2004 and was better than expected. Analysts polled by AFX News predicted a net balance of -3 pct.

At 8.20 am, shares in Bellway were steady at 1,049, Redrow slipped 0-1/2 to 499-3/4, Barratt rose 5 to 940 and Taylor Woodrow was up 1-1/2 at 355-1/2.