Latest Story
Broker tips: Crest Nicholson, LBG Media
By Iain Gilbert
Date: Wednesday 22 Apr 2026
(Sharecast News) - Analysts at RBC Capital Markets cut their target price on housebuilding company Crest Nicholson from 155p to 95p on Wednesday after the firm followed Berkeley Group in resetting expectations just a few short weeks after issuing a "robust trading update".
RBC Capital said the "temperature of the UK housing market has cooled quickly and significantly", and stated that it doubts that Berkeley and Crest "will be the only housebuilders to catch a cold".
The Canadian bank noted that whilst there wasn't "a cure for a housing market cold", a government-backed demand stimulus package "would ease the symptoms", and with housing supply falling rather than rising, it stated that if the government really wants to see an increase in housing supply it will "need to act, or cross all its fingers and toes".
RBC Capital, which reiterated its 'outperform' rating on the stock, reduced its earnings per share estimates by 122%, 85% and 59% across FY26-28, respectively, driven lower sales rates, lower land sales, lower ASPs, lower margin assumptions, and higher interest costs.
"We now forecast FY26 EBIT of £10m (revised guidance: £5-15m), compared to £35m previously. We have reduced our P/TBV valuation multiple (valued on FY26e and FY27e book value) from 0.55x to 0.35x, which reduces our price target from 155p to 95p, reflecting a more uncertain macroeconomic environment, and uncertainty surrounding Crest's balance sheet positioning," said RBC Capital.
Elsewhere, Deutsche Bank downgraded Crest Nicholson to 'hold' from 'buy' and slashed its price target on the stock to 79p from 228p following the housebuilder's profit warning a day earlier.
Crest downgraded FY26 volume expectations by around 11%, land sale revenue by 50% and now expects higher build cost inflation.
Berenberg cut its target price on digital publisher LBG Media from 170p to 90p on Wednesday following the group's interim trading update.
Berenberg said LBG's H1 update revealed "continued tough conditions" for its high-margin indirect business, even as the firm's lower-margin direct business - a strategic focus for LBG given its high-quality, more predictable revenue - delivered "excellent growth", almost doubling in the period, demonstrating that recent initiatives were "having the desired effect".
However, the German bank noted that given this mix shift, which has happened faster than management expected, it had opted to decrease its FY26 adjusted underlying earnings forecasts by 14%.
"The shares have sold off by c40% ytd and trade on an FY26 P/E of 10.3x and a free cash flow yield of 5.2% on our new numbers, said Berenberg, which retained its 'buy' rating on the stock. "We decrease our price target to 90p, as we incorporate a target earnings multiple and update our DCF assumptions."
Article Archive
Free Membership To Digital Look
Discover the full range of Investor's Tools and Services from Digital Look - voted 'Best Research & Information Provider 2007' by Investors Chronicle.
En HeaderFooterDLYou are here: research