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Highlights

  • Davy rates Barratt Redrow “Outperform” with a price target of AUD 11.65 (GBP ~556 / USD ~7.70), implying 51.39% upside

  • Goodbody assigns a “Buy” rating with a target price of AUD 13.31 (GBP ~634 / USD ~8.80), suggesting 73.02% potential upside.

Barratt Redrow plc (LSE:BTRW.L), the UK’s leading homebuilder, has received fresh endorsements from top equity analysts, with Davy and Goodbody Stockbrokers assigning positive recommendations and significant upside potential. The analyst updates might come on the back of the group's trading update for the 52 weeks ended 29 June 2025, ahead of its annual results due on 17 September 2025.

Analyst Ratings Support Growth Outlook

Davy analyst Colin Sheridan reaffirmed an “Outperform” rating on Barratt Redrow, setting a price target of AUD 11.65 (GBP ~556 / USD ~7.70). The target implies a 51.39% upside from current trading levels. 

Meanwhile, Goodbody analyst Shane Carberry took an even more bullish stance, assigning a “Buy” rating with a target price of AUD 13.31 (GBP ~634 / USD ~8.80). This represents a potential 73.02% upside. 

FY25 Performance Highlights

The Group delivered a encouraging operational performance in FY25, completing 16,565 homes, including 538 from joint ventures (JVs), compared with 14,004 in FY24. Net private reservations per active sales outlet per week improved to 0.64 (vs. 0.58 in FY24), underscoring resilience in demand.

Adjusted profit before tax, before Redrow purchase price allocation (PPA) adjustments, is expected to be in line with market expectations, driven by margin recovery and initial cost synergies. Barratt Redrow has already confirmed £69m in cost savings against a target of at least £100m, with £15m reflected in FY25 and an additional £45m anticipated in FY26.

The Group also reported a net cash position of c.£772m (USD ~983m / AUD ~1.48bn) at year-end, alongside a £700m undrawn revolving credit facility, providing ample liquidity to support growth and shareholder returns.

Outlook

Looking ahead, Barratt Redrow expects FY26 home completions of 17,200–17,800, including ~600 from JVs, reflecting broadly flat market conditions. However, management reiterated its medium-term target of delivering 22,000 homes annually, leveraging its nationwide footprint, land bank, and operational expertise.

The stock is currently trading at GBp 369.9 (AUD ~7.75 / USD ~4.70), leaving significant headroom to meet analyst expectations.