ABN Amro downgrades Persimmon, Taylor Wimpey
Written on January 8, 2008
Housebuilders’ woes were compounded today as ABN Amro downgraded Persimmon and Taylor Wimpey to ‘sell’ from ‘hold’ amid what it sees as continued poor conditions for the housing sector.
Cutting its EPS estimates for the sector by 19% in 2008 and 30% in 2009, ABN retained a ‘cautious’ view saying there still appeared to be downside potential http://fcrwizard.com.
The sector would be affected by a tighter UK mortgage market and weakening consumer confidence, ABN Amro said.
Shares in the two fell yesterday on the back of a recommendation by Dresdner Kleinwort to abandon the sector.
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