Goldman Sachs Bullish on BTRW, VTY and PSN Shares; Initiates BKG at Sell

Goldman Sachs has struck an upbeat tone on much of the UK housebuilding sector, initiating coverage on several major names with a broadly positive outlook for 2026. 

The bank said it holds a “constructive view” on UK home builders, arguing that an improving operating environment should support higher volumes, better margins and faster earnings growth, factors it believes are not yet fully reflected in current valuations.

Barratt Redrow (LON: BTRW) was initiated with a Buy rating and a 449p price target. 

Goldman Sachs analyst Rebecca Parker suggested that the backdrop for the industry is steadily improving, and that easing mortgage rates into next year should help affordability. 

Vistry Group (LON: VTY) also entered coverage with a Buy rating and a 731p price target, with the firm expecting sentiment to shift as housing indicators strengthen.

Persimmon (LON: PSN) received a Buy rating and a 1,446p target, with Goldman again pointing to the potential for accelerating earnings as volumes and margins improve. 

In each case, the bank acknowledged some uncertainty linked to fiscal policy, but said the forthcoming budget announcement should act as a catalyst by shifting attention back to improving fundamentals.

However, Goldman Sachs took a markedly different stance on Berkeley Group (LON: BKG), initiating with a Sell rating and a 3,714p target. While the bank remains positive on the wider sector, it suggested that Berkeley may offer less upside relative to peers. 

Bellway (LON: BWY) and Taylor Wimpey (LON: TW.) were both initiated at Neutral, with 2,844p and 109p price targets, respectively.