Barratt Redrow (BTRW.L) FY26 results: Resilient performance in a tough macro backdrop; Reiterate Buy

Following Barratt Redrow's FY26 results, Goldman Sachs lowers its FY27-FY30E PBT estimates by 6%-8% reflecting lower volume assumptions and slightly higher admin and interest expenses, and cuts its price target 3% to 340p (from 350p). The Buy rating is reiterated, underpinned by: 1) the focus on cost discipline, 2) resilient sales performance, 3) a credible outlet growth program, and 4) attractive shareholder returns. The company delivered a robust trading performance during the first 10 weeks of the financial year, with the net private reservation rate including bulk sales up 12% to 0.62 per outlet per week versus 0.55 in the prior year period, and only a marginal 4% decline to 0.53 excluding bulk. Forward-looking indicators such as customer inquiries and website traffic remained stable. Outlet guidance was downgraded to 405 sales outlets from 415 due to planning administrative delays rather than outright refusals. Administrative expenses of £330m came in significantly below the previ