Crest Nicholson shares slump following third profit warning

Crest Nicholson shares fell 12% on Thursday following its third profit warning of the year. The UK housebuilder now expects a full-year operating loss of approximately £10m, a significant reversal from its previous guidance of a £5m to £10m profit.

The company attributed the downturn to weaker summer sales, aggressive pricing competition, and affordability pressures among buyers. Consequently, Crest Nicholson has reduced its full-year completions forecast to between 1,350 and 1,400 homes. The stock has declined approximately 62% year-to-date.

In response to the news, analysts have adjusted their outlooks. Royal Bank of Canada downgraded the stock to an ‘outperform’ rating with a target price of 95p, while Berenberg Bank lowered its target to 58p with a ‘hold’ rating. JPMorgan Chase & Co. previously lowered its price objective to 80p with a ‘neutral’ rating.