Phoenix Asset Management Partners, a major shareholder in Barratt Redrow, is calling on the homebuilder to materially increase its share buybacks. Phoenix presented its analysis at the London Value Investor Conference, arguing that Barratt Redrow is materially undervalued and that aggressive buybacks would create significant value for long-term shareholders. The firm, which first invested in 1998, supports the company's business strategy but believes a new capital allocation approach is needed to exploit the depressed valuation. Phoenix says Barratt Redrow has substantial financial headroom to maintain its growth strategy while pursuing an aggressive buyback programme, and it has published its analysis at www.buybarrattback.com.
Barratt Redrow plcMajor shareholder calls for accelerated share buybacks, citing undervaluation and financial headroom.