LONDON, May 13 (Reuters) - Shares in Taylor Wimpey climb by 7.6percent to be the top riser on the FTSE 250 mid-cap index after thestrong British housing market prompts the housebuilder to increase itsprofitability targets.
Taylor Wimpey, Britain's third largest housebuilder by market value, risesto as much as 110 pence.
Shares in rival housebuilders Barratt Developments, Persimmon also advance to be the top two risers on the FTSE 100 blue-chipindex while Crest Nicholson shares edge up 2.3 percent.
"It's very positive news for Taylor Wimpey because they're upgradingguidance to the market on expected results," says Jefferies analyst AnthonyCodling.
"There is broad read-across because the things that are leading to theincreased guidance at Taylor Wimpey also apply to the other companies in thesector as well."
Taylor Wimpey says that in 2014 it expects to deliver an operating marginincrease of at least 300 basis points, and a return on net operating assets ofat least 20 percent. It previously said it would deliver at least 200-300 basispoints of operating margin improvement over the year.
It is also targeting an average operating margin of 20 percent over theperiod 2015-2017, a return on net operating assets of at least 20 percent peryear, as well as average increase in net assets of 15 percent per year over theperiod.
British housebuilders have enjoyed strong sales and sharp rises in theirshare prices over the past year after government schemes to supportcash-strapped buyers shored up demand for their homes and triggered a widerrecovery in buyer sentiment across the market.
Reuters messaging rm://brenda.goh.thomsonreuters.com@reuters.net
Barratt Developments (BDEV)
Persimmon (PSN)
Taylor Wimpey (TW.)
