Barratt Redrow shares fell more than 2% on Monday after Deutsche Bank trimmed its profit outlook and lowered the price target by 15%. The brokerage cut the target to 454p from 536p, keeping a buy rating while the stock closed at 388.90p in the first half of the year.

Analyst Chris Millington said the downgrade follows Barratt’s first‑half results, which matched expectations but exposed the strain of tougher trading conditions. The firm’s £1.3bn provision for fire‑safety remediation will curb cash flow, even as management pushes outlet expansion and margin recovery in the UK market.

Deutsche Bank cut pre‑tax profit estimates by 9% for FY26, 6% for FY27, and 7% for FY28, and raised its discount rate from 8% to 10% to reflect the remediation burden. Despite near‑term headwinds, the bank still expects Barratt to deliver above‑average growth With a current price‑to‑net tangible assets ratio of 0.79x, the revised target aligns with the 2026 net tangible assets valuation. Investors should weigh the company’s high provision against its projected margin improvement and outlet growth, as the market reacts to the new discount rate and remediation costs.