Taylor Wimpey: Margin Recovery Taking Longer Than Anticipated, but Shares Are Cheap
Key Morningstar Metrics for Taylor Wimpey
Taylor Wimpey TW. issued a trading update for calendar 2025. Headline completions and average selling price for the year were in line with consensus expectations, but the outlook for top-line growth, margin progression, and therefore operating profits, slightly disappointed.
The bottom line: After tweaking our forecasts we make no changes to our GBX 145 fair value estimate. We view the shares as undervalued but maintain a preference for Persimmon, which boasts minimal exposure to the challenged London and the Southeast markets.
- We lower our margin outlook for 2026 through 2028 to reflect the slower-than-anticipated margin recovery on the back of lowering our average selling price growth…
