Barratt Developments upgraded by Berenberg, UK housebuilder shares react

By Anna Wagner, Analysts & Consensus desk. Reviewed prior to publication on 2026-06-27, 12:04.

Barratt Developments (GB0000811801) is back on analysts' radar after a fresh call from Berenberg. The London-listed UK housebuilder, whose shares trade on the LSE, is part of a sector that has seen marked valuation pressure over the past year as documented by Investing.com.

What Berenberg is changing

Berenberg has revised its stance on Barratt Developments, upgrading the stock to Buy and setting a new price target of 348 pence per share, according to a detailed sector note on UK housebuilders. The research house couples the higher rating with a cut to profit before tax forecasts for 2026 to 2028, reducing estimates by around 15 percent on average compared with its previous view.

The analysts see selective opportunities in the mainstream UK housebuilding segment despite weak sentiment, pointing to depressed valuations and strong balance sheets across names such as Barratt, Redrow and Bellway. The report notes that the sector's average tangible net asset value multiple has fallen to around 0.7 times versus a 20-year average near 1.2 times, underscoring how far pricing has moved away from historical norms.

Sector pressure and peers

Across UK-listed housebuilders the share price retreat over the past 12 months has been pronounced, with the sector down roughly 38 percent on average, based on Berenberg's compilation of performance figures. Losses range from around 7 percent for Berkeley Group to about 61 percent for Crest Nicholson and Vistry, illustrating the dispersion in investor confidence within the group.

Berenberg's note also highlights changes for other UK peers: Bellway receives an upgrade to Buy with a price target of 2,400 pence, even as 2027 to 2028 profit forecasts are trimmed by about 5 percent. Taylor Wimpey keeps a Buy rating but sees its price target cut to 100 pence, with planned reductions to profit estimates averaging 14 percent over the 2026 to 2028 period. The common thread is a cautious near-term earnings picture offset by capital return potential.

The business behind the stock

Barratt Developments generates its revenue primarily by building and selling residential homes across the UK under brands such as Barratt Homes, David Wilson Homes and Barratt London, as outlined on its corporate site.[LAND] The group typically focuses on large-scale developments and mixed-tenure projects, offering properties ranging from entry-level housing to more premium units in urban and suburban locations.[LAND]

Where the shares trade today

The Barratt Developments shares (GB0000811801) trade on the London Stock Exchange in pounds sterling; the latest live price and market capitalization are published by the exchange and major data providers during UK trading hours.[LAND]

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security.