Redrow benefits from Berenberg upgrade, shares in focus among UK housebuilders

By Anna Wagner, Analysts & Consensus desk. Reviewed prior to publication on 2026-06-27, 10:36.

Redrow (GB0007323586) enters the weekend with fresh analyst attention. Berenberg has upgraded the UK housebuilder to Buy and set a price target of 348 pence, highlighting valuation and capital returns in a weak sector backdrop, according to Investing.com.

What Berenberg is saying

According to a sector note summarized by Investing.com, Berenberg has revised its earnings forecasts and ratings across UK housebuilding stocks, including Redrow. The research house now sees selective buying opportunities, even as it cuts profit before tax estimates by about 15 percent on average for 2026 to 2028.

The report describes mainstream UK housebuilders’ tangible net asset value at roughly 0.7 times on average, compared with a 20-year average of about 1.2 times, underscoring depressed valuations. Berenberg argues that strong balance sheets and attractive capital returns allow companies such as Redrow, Barratt and Bellway to weather a downbeat market outlook.

Sector context and peers

The broader UK housebuilding sector has dropped around 38 percent on average over the past year, with single-name declines ranging from roughly 7 percent for Berkeley Group to around 61 percent for Crest Nicholson and Vistry, according to the Investing.com summary. This performance gap highlights differing investor views on land banks, regional exposure and capital allocation.

In a recent Bloomberg "Stock Movers" audio update, Barratt and Redrow were mentioned together as climbing after Berenberg’s upgrade, with Bellway also in focus. The commentary pointed to depressed valuations combined with strong balance sheets and capital return profiles as the main reasons for the more constructive stance on selected UK builders.

The business behind Redrow

Redrow operates as a UK-focused residential developer, concentrating on building family homes across England and Wales. The group is known for its "Heritage" collection of traditional-style houses and integrated developments that combine housing with local amenities, according to its corporate materials.

Where the shares trade today

Redrow shares (GB0007323586) are listed on the London Stock Exchange in sterling. As of 2026-06-27, 10:30, recent market data on the primary venue indicate the shares trading around their upgraded price-target context in pounds, reflecting the latest Berenberg call.

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. All data and assessments are based on sources cited and may change over time.