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Investing.com - RBC Capital upgraded Barratt Redrow PLC (BTRW:LN) (OTC:BTDPY) to Outperform from Sector Perform while lowering its price target to GBP3.50 from GBP4.25.
The firm reduced estimates and valuation multiples across the homebuilding sector as part of a broader sector note published today. The stock currently trades at a P/E ratio of 17.72 with a notably attractive PEG ratio of 0.38, suggesting potential value relative to growth prospects.
RBC Capital’s ratings are based on a sector relative basis. Following the changes, the firm believes Barratt will outperform the sector.
The analyst stated that the upside on the lower estimates and lower multiples looks compelling. InvestingPro data indicates the stock is undervalued according to its Fair Value analysis, with shares trading near their 52-week low. Investors can access 10 additional InvestingPro Tips for deeper insights into Barratt Redrow’s investment potential.
The upgrade to Outperform comes with the new price target of 350 pence.
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