BUZZ-Crest Nicholson: slumps on subdued outlook

** UK-based housebuilder Crest Nicholson (Frankfurt: A1KCZN - news) down 12.2 pct, on track for worst day since June 2016

** Co sees FY operating margin at lower end of prior forecast (prior FY operating margins forecast of 18-20 pct), as rising construction costs hurt pricing of its homes

** Says generally flat pricing against backdrop of continuing build cost inflation at 3-4 pct affected operating margins

** Says sales at higher price points will continue to be impacted by a slow second-hand market and this is likely to restrain overall price growth in the near term

** Says margins for next year expected to be at a similar level to this year

** Crest (BSE: CREST.BO - news) has a focus on the South and South East of England, and it appears to us that a sluggish second-hand market is starting to impact performance at Crest - Jefferies

** Shares (Berlin: DI6.BE - news) at bottom of FTSE Mid Cap Index; lowest since Nov 2016