(WebFG News) - Estate agency Countrywide posted a drop in first-quarter income on Wednesday on the back of weak London sales.
Analysts at Credit Suisse maintained their 'underperform' recommendation for shares of Countrywide on Tuesday, citing a range of negative factors which were expected to bear down on the share price.
Shares in estate agency Countrywide tumbled on Thursday as it said it swung to a loss in 2017, scrapped its dividend and sounded a cautious note on its outlook.
Like the day before, it was some of the more defensive issues in the market that bore the brunt of selling despite the rout in equities worldwide, with recent slight shifts in expectations for policy tightening by the Federal Reserve in 2018 apparently triggering a sharp rise in stockmarket volatility as government bonds markets in the US, and elsewhere, came under pressure.
Countrywide: Berenberg upgrades to hold with a target price of 95p.
Expecting strategic announcements from Countrywide's first market update following its recent profit warning, analysts at Berenberg said if the firm could find room for investment to improve its competitive positioning, brighter days could be ahead.
Countrywide said on Wednesday that chief executive officer Alison Platt has resigned, less than a week after the company's shares tumbled on the back of a profit warning.
Property services group Countrywide warned on Thursday that 2017 income will be down on the previous year following a disappointing performance from its sales and lettings business.
A range of new housing policies were proposed by Chancellor Philip Hammond in his Budget statement, including more funds for smaller housebuilder, a probe into potential holding of land by major housebuilders and a stamp duty cut for first-time buyers.
Estate agency Countrywide cautioned on Thursday that it expects results for the full year to be towards the lower end of the range of market expectations as housing transactions slow across the UK.
Rotork: Goldman Sachs downgrades to neutral with a target price of 280p.
Countrywide took a hit on Monday after Credit Suisse downgraded the stock to 'underperform' from 'neutral' and slashed the price target to 111p from 288p as it took a look at UK estate agents.
Countrywide: Credit Suisse downgrades to Underperform with a target price of 111p.
Countrywide's chief financial officer Jim Clarke plans to step down from the board on 31 July and retire at the end of the year after more than 10 years at the company.
House prices rose for the fifth month in a row in May, according to a new survey that runs counter to recent industry research based on sale completions.
Integrated property services group Countrywide reported a drop in revenue for the first quarter, in line with its expectations.
Hochschild Mining: RBC Capital Markets reiterates Outperform with a target price of 290p.
Estate agent Countrywide reported a small increase total group income for the year to the end of December as it said earnings are expected to be in line with the current range of market expectations amid a challenging market and a slowdown in London.
As Foxtons revealed details of its troubled 2016 and warned of continued harder times in the year ahead, new analysis of the housing sector confirmed increasing levels of financial distress among UK estate agents.
FTSE 250 estate agency group Countrywide confirmed on Thursday that it is undergoing a strategic review in relation to its commercial property arm, Lambert Smith Hampton.