📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Analyst starts Vistry Group share with buy, sees significant upside

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

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.