Housebuilder Barratt Developments has been making a valiant attempt to avoid relegation from the FTSE 100 index, but probably in vain.
Its shares now stand 5.5p higher at 483p on a mixture of an analyst's recommendation and a smattering of takeover talk.
Credit Suisse upgraded Barratt from neutral to outperform, although it lowered its target price from 780p to 530p. At the same time it downgraded Persimmon, down 13.5p to 817p, from outperform to underperform. It said: "This is a straight valuation call, with us preferring, on a relative basis, to play the stock (Barratt) with a more negative scenario priced in than a stock still trading at a premium (Persimmon). Our preference for Barratt also implies, in our view, reduced relative downside risk."
As for the takeover talk, this was reported by FT Alphaville as part of an interesting discussion on financial regulation and journalism. A French company was suggested as a possible bidder.
Unsurprisingly, given the tone of the aforementioned discussion, a spokesman for Barratt refused to comment on market rumours. The company's shares have come off their best levels, suggesting waning enthusiasm for the tale. However, it is worth bearing in mind that if a hostile bid is being prepared, the prey is often the last to know.
