Redrow benefits from Berenberg upgrade, shares extend weekly rally

By Anna Wagner, Analysts & Consensus desk. Reviewed prior to publication on 2026-06-26, 15:32.

Barratt Redrow (GB0007323586) is drawing fresh attention in London trading after a positive analyst call. The combined UK homebuilder, whose primary listing is on the London Stock Exchange, has been upgraded to Buy by Berenberg and is leading a weekly sector rebound.

What Reuters and Bloomberg report

Bloomberg notes that Barratt Redrow is up about 14 percent this week, on track for its biggest advance in almost six years and roughly double the gain of a Bloomberg index of UK homebuilders. Bloomberg coverage of the homebuilder rally The move comes as traders scale back expectations for further interest-rate increases, which had pressured UK housing demand.

In the same report, Bloomberg highlights that investors are increasingly focused on potential capital returns at Barratt Redrow, including share buybacks, given the company’s balance sheet strength. Bloomberg report on buyback expectations The company’s outperformance versus UK peers such as Bellway underscores how sensitive the sector remains to rate expectations and capital allocation signals.

Berenberg’s view on the stock

Analyst house Berenberg has upgraded Barratt Redrow to Buy, arguing that a roughly 43 percent earlier share-price drop had left the stock looking inexpensive even after cuts to its forecasts and target price. Finimize summary of the Berenberg upgrade On Berenberg’s estimates, the shares trade at about 0.6 times tangible net asset value, a level the broker views as undemanding for a major UK housebuilder.

The broker also points to an expected net cash position of around £600 million at the end of the forecast period, which could support sustained capital returns alongside the existing dividend. Analyst discussion of valuation and cash For comparison, other UK-listed peers such as Bellway and Taylor Wimpey also offer high cash generation, but Berenberg singles out Barratt Redrow as particularly mispriced relative to its asset base.

How Barratt Redrow earns its money

Barratt Redrow focuses on residential property development across the UK, combining Barratt’s volume housebuilding platform with Redrow’s established premium family housing brand. The group acquires land, secures planning consent and builds new homes, primarily for private buyers, with additional units for affordable housing providers.

Where the shares trade today

The Barratt Redrow shares (GB0007323586) last traded on the London Stock Exchange at around 295.50 pence as of 2026-06-26, 13:00 London time, according to recent price data in pounds sterling.

This text is for informational purposes only and does not constitute investment advice, a recommendation to buy or sell any security, or any other form of financial advice.