RBC Adjusts Ratings for UK Housebuilders, Berkeley Group Gets Double-Upgrade

RBC Capital has revised its ratings on several major UK housebuilder stocks, prompting investor reaction as share prices respond to updated forecasts.

Berkeley Group (LON: BKG) was upgraded to Outperform from Underperform, with the price target raised to 4,900p from 4,550p. 

Analyst Anthony Codling noted that in times of uncertainty, Berkeley should outperform, citing the group’s resilience relative to its peers. BKG shares moved higher following the report, rising around 0.9% on Wednesday. The stock is up 1.1% in early Thursday trading. 

Persimmon (LON: PSN) was also upgraded, moving to Sector Perform from Underperform. RBC highlighted Persimmon’s success in opening new sites, raising its price target to 1,375p from 1,325p. The firm noted that Persimmon is currently leading in the expansion of active developments.

Persimmon shares gained 1.2% on Wednesday. This morning, the stock has risen a further 1.1%.

By contrast, Taylor Wimpey (LON: TW.) shares declined 0.4% in Wednesday’s session. The company’s shares were downgraded to Sector Perform from Outperform, with its price target cut to 135p from 150p. 

RBC cited a slowdown in the company’s growth in site numbers as the key reason for the downgrade. Despite Wednesday’s decline, TW is up over 1% so far on Thursday.

Bellway (LON: BWY) also received a downgrade to Sector Perform from Outperform, with its price target lowered to 3,150p from 3,600p. Codling highlighted slowing growth for Bellway, saying the company may have to work harder than previously thought to meet volume targets for fiscal 2026.