LONDON (ShareCast) - (Sharecast News) - Analysts at Canaccord Genuity nudged up their target price on residential property developer Barratt Developments from 625.0p to 630.0p on Thursday, stating the group's planned volume growth supported profit recovery.
Canaccord said Barratt's 2020 full-year results were "severely impacted" by the lockdown, with completions down roughly 30% and profits sharply lower.

However, the Canadian bank said Barratt had exited lockdown "in decent shape" - with its sites now open and operating at close to normal levels in terms of build rates.

Canaccord also highlighted that the firm had seen "very strong trading" in July and August, and even though it noted trading had "undoubtedly" been helped by pent-up demand, Help to Buy and the recent stamp duty cuts, the analysts still felt demand appeared to have some good traction amid reassuringly firm pricing.

"There are the obvious macro risks relating mainly to rising unemployment which cannot be ignored, but the market is so far proving to be remarkably resilient and looks tentatively encouraging," said Canaccord, which stood by its 'buy' rating on the group.

"The shares continue to look relatively un-stretched on valuation against the sector average."

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