Taylor Wimpey PLC (LSE:TW.) shares trade at an unjustified premium to peers, according to Deutsche Bank, which warned over the sustainability of the housebuilder's dividend.
Shares across the housebuilding sector fell after Taylor Wimpey PLC (LSE:TW.) warned of softer pricing in the order book and that build cost inflation will be higher than previously expected.
Taylor Wimpey share price continued its relentless freefall, reaching its lowest level July 2023, down by over 46% from its since July 2023. It has plunged by over 45% from its highest point in October 2024, erasing billions of dollars in value.
Taylor Wimpey PLC (LSE:TW.) said trading has remained "steady" so far this year, though pricing and costs are coming under pressure.
Shares in Taylor Wimpey PLC (LSE:TW.) fell 3% to 101p after the housebuilder flagged a modest miss for 2025 and warned that profitability is likely to come under further pressure this year.
Taylor Wimpey PLC (LSE:TW.) has warned that operating margins are set to fall this year, even after delivering a 'solid' performance in 2025, as affordability pressures continue to weigh on demand and a weaker order book pushes profits towards the second half.
Taylor Wimpey PLC (LSE:TW.) said it remains on track to meet its full-year 2025 expectations for UK completions and group operating profit, despite subdued market conditions and a softer sales rate in the second half of the year.
Taylor Wimpey PLC (LSE:TW.) has laid out an ambitious growth plan to 2030, and Citi thinks it stacks up, even if the near term still looks sluggish.
Taylor Wimpey PLC (LSE:TW.) set out new medium-term growth targets to deliver 14,000 UK completions excluding joint ventures, with an operating profit margin of 16-18% and a return on net operating assets above 20%.
Berenberg's latest construction note strikes a cautiously upbeat tone on UK housebuilders. The sector may still be battling affordability pressures and a mixed reporting season, but the analysts point out that housing starts are climbing again in 2025, the first time since 2021 that volumes have turned positive.
Taylor Wimpey PLC (LSE:TW.) shares slipped 5% after its half-year results, but UBS kept its 'buy' rating and a price target of 155p, implying around 50% upside from current levels.
Taylor Wimpey PLC (LSE:TW.) shares fell 6% on Wednesday after the FTSE 100 housebuilder swung to a first-half pre-tax loss of £92.1 million, largely due to a significant increase in cladding fire safety provisions.