Broker snap: Panmure downgrades Bovis to hold

17th Oct 2011 11:58

Panmure Gordon has downgraded Bovis Homes from buy to hold, following the recent rise in the house builder's share price.The broker notes that Bovis's shares have jumped 40% over the last two months and closed at 454.90p on Friday afternoon, just pennies away from its target price of 467p. "At this stage in the cycle, despite being positive on the sector overall, we think a 15% discount to net asset value is fair, particularly given the uncertainties in the economy at large," Panmure said.The target price remains unchanged.Nevertheless, shares continued to rise on Monday morning and were up 0.86% at 458.8p by 11:55.BC