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Deutsche Bank has cut its forecasts for Taylor Wimpey PLC (LSE:TW.) by up to a quarter and reduced its target price to 82p from 96p, warning that the housebuilder's premium rating will fade now that its dividend has been halved.

Taylor Wimpey PLC (LSE:TW.) cut its shareholder distribution policy after weaker demand and rising costs pushed first-half underlying profit down by almost a fifth.

UK housebuilders are under intense pressure this year. Barratt Redrow shares have dropped by 27%, while Taylor Wimpey, Barratt Redrow, and Persimmon have plunged by 27%, 28%, and 25% this year.

Persimmon PLC (LSE:PSN) shares rose 4% on Monday after JP Morgan named the housebuilder as its preferred stock in the sector while downgrading Taylor Wimpey PLC (LSE:TW.) and Vistry Group PLC (LSE:VTY) to 'underweight', as rising mortgage rates and build cost inflation force the bank to cut its 2027 earnings forecasts by an average of 20%.