It’s another big week for the housebuilding sector, but income seekers will also have eyes on high-yielders Vodafone and Royal Mail.
Monday 13 November
Days after Persimmon (PSN), Redrow (RDW) and Galliford Try (GFRD) went public with their most recent performance data, big guns Barratt Developments (BDEV), Taylor Wimpey (TW.) and Bovis Homes (BVS) give their numbers an airing.
Reaction to Persimmon and Redrow only served to further panic investors in a sector where many fear growth is beginning to flag. Profit-taking following recent government backing for the Help to Buy scheme has been sector-wide.
However, Galliford’s update Friday reported “good market conditions across its three businesses”, which tempted buyers back in despite another day of losses for the wider market.
Analysts at Barclays recently downgraded Persimmon, Berkeley Group (BKG), Redrow, Bellway and Taylor Wimpey, although price targets are either unchanged or higher. It believes prices “may have run ahead of themselves”.
Still, the broker remains ‘overweight’ on Barratt, the country’s largest housebuilder by volumes. With significant scale benefits and opportunity to increase margins, it slaps a 710p price target on the shares, implying 15% potential upside.
Zoo Digital, Datatec, McKay Securities, Carrs Group, Lonmin, Ladbrokes Coral, Taylor Wimpey, Dignity, Lonmin
Tuesday 14 November
Vodafone (VOD) publishes half-year results for the six months ending 30 September 2017 on Tuesday. The company, which is the fastest growing broadband operator in Europe, says broadband is a major driver of growth, so watch out for the latest numbers there.
UBS expects good things. “Too cheap,” the broker said recently, repeating ‘buy’ advice and, even after nipping 10p off its price target, still expects the shares could reach 70p. The shares currently offer a 6% dividend yield.
Land Securities, Jackpotjoy, Trifast, AVEVA, Telecom Egypt, Speedy Hire, Romgaz, Picton Property Income, SRT Marine Systems, Vodafone, Intermediate Capital Group, DCC, BTG, Cropper (James), Electrocomponents, Wentworth Resources, Renold, FirstGroup, McCarthy Stone, BBA Aviation, Meggitt, Polypipe, UBM, Bovis Homes, Irish Continental Group, ITV
Global Petroleum, Mucklow (A & J), Nanoco, Smiths Group, Rainbow Rare Earths Limited
Wednesday 15 November
Premier Foods, Celtic, TalkTalk Telecom, Great Portland Estates, Experian, Helical Bar, Zambeef Products, Game Digital, Avon Rubber, Fenner, AB Dynamics, Blue Prism, Barratt Developments
Jupiter UK Growth Investment Trust), Pacific Horizon Investment Trust, Hays, Henderson Eurotrust, Celtic, Barratt Developments
Thursday 16 November
Still beset by problems with the unions and dwindling letter writing, Royal Mail (RMG) shares remain near record lows. There’s still the likelihood that this dispute will cost more than expected to settle, or that even the threat of industrial action convinces customers to go elsewhere.
Young & Co’s Brewery, Royal Mail, Mediclinic International, 3i, Dart Group, Assura, British Land, Investec, Medica, QinetiQ, Norcros, Nanoco, Safestore, Ted Baker, Vitec, Close Brothers, Keller, Coats, Premier Oil
Close Brothers, Genus, Romgaz
Friday 17 November
Nextenergy Solar Fund, Record
Sylvania Platinum, Kier Group, Central Rand Gold, Amur Minerals, Seeing Machines
This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.