Broker Recommendations
Bank of America downgrades Taylor Wimpey to 'neutral', sees near-term headwinds
By Michele Maatouk
Date: Tuesday 02 Sep 2025
(Sharecast News) - Bank of America downgraded Taylor Wimpey to 'neutral' from 'buy' on Tuesday and cut the price target 13% to 105p, pointing to near-term headwinds.
"We still like their quality land bank, high presence among first time buyers and we believe the mid-term growth story is intact driven by a lower rate/planning reform," it said.
"However, we see some headwinds in the near term for this name: a slower-than-peers' progress in outlet opening, a softening 2Q market condition, fire safety issue only to be fixed by 2030, dividend payment is not comfortably covered, and consensus on FY26 margin expansion is optimistic, in our view."
Bank of America said Taylor Wimpey's 2026E multiple is at circa 0.8x P/B and 11x P/E. This is low but is largely in line with what the one-year forward return on equity is implying at 0.9x and 11.8x respectively, it said.
At 0905 BST, the shares were down 3.2% at 92.98p,
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