Taylor Wimpy stock price
Taylor Wimpey’s stock price (LON: TW) went from 152p to 191.7p from early February to mid-April. Since then, Taylor Wimpy’s shares have risen 9.94% since the turn of the year, but have been soaking. The FTSE 100 Homebuilder remains in some form of pre-pandemic best at 232.4p.
House needs
According to Pete Redfern, CEO of Taylor Wimpey, demand for homes has skyrocketed and is set to stop immediately. “I’ve always been confident about the fundamental demand over the last 20 years,” Redfern said.
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The comments from the Taylor Wimpey boss came at the end of April as the company revealed its first quarter results. The group revealed a “strong” pipeline, as on April 18, 2021, where the purchase order value increased by £140 million from the previous year.
However, concerns about these levels of sustainability remain as governments are expected to eliminate some of the favorable policies aimed at the housing market during the pandemic.
Redfern has sought to reassure investors who may be concerned about the possible government stamp mandatory holiday by reducing its influence on high levels of demand in the housing market.
“I still think that stamp mission holidays are not a big part of what we see,” he said. “What we’re seeing is driven by fundamental demand.”
Outlook
Taylor Wimpey expects to reach 85% to 90% in 2021 compared to 2019, but is looking to reach 21% to 22% over the next two to three years. This year’s home builders are looking for a return from 18.5% to 19%, significantly higher than their current margin of 10.8%.
