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Analyst starts Vistry Group share with buy, sees significant upside

EditorNatashya Angelica
Published 06/21/2024, 11:33 AM

On Friday, Vistry Group PLC (LSE:VTY), a UK-based home construction company, received a positive outlook from investment firm Stifel. The firm initiated coverage on Vistry Group with a Buy rating, accompanied by a stock price target of GBP12.90.

Stifel's analysis suggests that Vistry Group's adoption of the Partnerships model will be a key driver for the company's financial improvement. The model, which prioritizes capital turnover over margin, is expected to enhance the return on capital.

According to Stifel, there is a considerable demand from Housing Associations and similar partners that has not been adequately met until now. Vistry Group's ability to cater to these needs places it in a favorable position within the market.

The firm anticipates that Vistry Group's strategic approach will lead to significant total shareholder return (TSR) upside. This optimism is further bolstered by the company's promise of dividends and buybacks, projected to be around 7.5% per annum over the next three years.

The positive forecast for Vistry Group comes at a time when the housing sector is experiencing shifts in demand patterns. Stifel's endorsement reflects confidence in Vistry Group's business model and its potential to deliver strong financial results and shareholder value.

The new stock price target set by Stifel represents a potential increase from the company's current trading levels, indicating a bullish stance on the stock's future performance. Shareholders and potential investors in Vistry Group may find this new coverage a significant point of reference for their investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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