Barclays names Crest Nicholson 'top pick', confident on housebuilders

19th Oct 2016 10:26

(ShareCast News) - Crest Nicholson got a boost on Wednesday as Barclays said the stock was its 'top pick', replacing Redrow, following a period of share price underperformance that has left it looking "highly attractive".In a note on the UK housebuilding sector, the bank said that aside from a brief spike in cancellations immediately after the Brexit vote - which was largely confined to London and commuter towns - housebuilders continue to trade well."The EU referendum vote now joins a list of recent headwinds (a general election; the Scottish independence vote) that have failed to derail the sector. Indeed, as memory of the vote continues to fade, strong fundamentals come more sharply into focus."With mortgage rates at record lows, government commitment strong (Help to Buy Equity Loans remain in place until 2021) and an embarrassment of riches on offer in the land buying market, fundamentals remain intact," it said.Barclays said trading since the vote to leave the European Union has defied expectations, while wider economic fears have also tempered. As a result, it lifted price targets on a number of stocks across the sector.As far as overweight-rated Crest Nicholson is concerned, it pointed to a strong top-line growth focus driven by a move to higher price points.In addition it said the company's Southern footprint captures attractive end markets. It also argued that the group has "highly-regarded land buying credentials and the fastest sales rate in the listed space".At 1035 BST, Crest Nicholson shares were up 3.3% to 421.60p.