UK & European Research at a Glance - May 12, 2026

Research evidence excerpt

UK & European Research at a Glance - May 12, 2026

UK & EUROPEAN RESEARCH AT A GLANCE

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Mike Dahl (Analyst) RBC Elements™: Big Data Behind Big Builders

(212) 618-3251; michael.dahl@rbccm.com Published May 11 2026 16:10:00 EDT

Price Ticks Down as April Still Showered with Inventory

Pricing trends remained soft in April and sequentially worsened with net negative

price magnitude on both base (-0.1% m/m vs. flat in Mar.) and spec (-0.6% m/m vs.

-0.3% in Mar.). This comes in the heart of the spring selling season (with a seasonally

weaker March to April jump) despite March’s resilience and more closely resembles

our data’s weaker Jan./Feb. and 4Q. Inventory continues to tick higher (spec and

specs/community +3%/+2% m/m, +7%/+6% q/q), despite more builders voicing a

desire to mix back toward built-to-order. We continue to see clear margin/volume

risk for C2Q/2H given elevated inventory and as consumer confidence remains

weak amidst persistently high rates and broader inflation. Net, we remain cautious

on builder stocks as we expect continued volatility/pressure in demand/margins.

Company Comments

Benjamin Toms, ACA (Analyst) Banco Bilbao Vizcaya Argentaria SA (MADRID: BBVA; 18.76)

+44 20 7002 2258; benjamin.toms@rbccm.com Published May 12 2026 00:45:00 EDT

Pablo de la Torre Cuevas (Analyst)

+44 20 7653 4553; pablo.delatorrecuevas@rbccm.com Model update

Rating: Sector Perform

Price Target: 20.50 ↑ 20.25

Our view: We update our estimates following BBVA's Q1'26 results, increasing our

PT to EUR20.50 (previously EUR20.25) and reiterating our Sector Perform rating.

Benjamin Toms, ACA (Analyst) Banco Santander, S.A. (MADRID: SAN; 10.42)

Rating: Outperform

Price Target: 12.75 ↑ 12.50

Our view: We update our estimates following SAN's Q1'26 results, increasing our