Berkeley Group Holdings (The) (BKG)

Sector:

Household Goods

Index:

FTSE 100

4,275.00p
   
  • Change Today:
      9.00p
  • 52 Week High: 4,457.00
  • 52 Week Low: 3,165.00
  • Currency: UK Pounds
  • Shares Issued: 108.44m
  • Volume: 223,276
  • Market Cap: £4,635.61m
  • RiskGrade: 234
  • Beta: 0.04

Jefferies considers cladding issues, downgrades three UK housebuilders

By Michele Maatouk

Date: Monday 24 Jan 2022

LONDON (ShareCast) - (Sharecast News) - Jefferies downgraded its recommendation on three UK housebuilders on Monday as it assessed the impact of cladding issues.
The bank downgraded Barratt Developments, Bellway and Berkeley Group to 'hold' from 'buy'.

It said that whether housebuilders should or will shoulder the whole burden of cladding remediation is a "complex and emotive" discussion. Even including a worst-case scenario of 12% tax rate to fund remediation, it still sees value in the sector.

Jefferies' top picks are buy-rated Persimmon, Crest Nicholson & Redrow. "Despite stepping up tax by a further 8% in FY22, we remain buyers of Persimmon, Taylor Wimpey, Crest Nicholson, Redrow and Vistry," it said.

"Against the backdrop of what could be a loud campaign from government, share prices could see significant volatility in the coming months. However we still believe there to be opportunity in the sector."

As far as Barratt, Bellway and Berkeley are concerned, Jefferies said that for those housebuilders who provisioned under the previous scope - i.e. buildings above 18 metres - and/or where they are the 'responsible person', it sees risk of further one-off charges and cash outs for cladding remediation, as well as negative PR.

"At this stage we believe even the housebuilders themselves do not know the full extent of the cost (M&A through the period, lack of access, uncertain 'solutions', labour constraints, clawback from freeholders) but with approximately 55% of the high rise buildings requiring remediation in London, we believe it is fair to assume the exposure to those with a long history of build in the Capital could be more substantial," it said.

"Until there is greater understanding of the scale and cost of remedying their own build, our price targets reflect this higher risk profile, and share price performance constrained."

The bank cut its price target on Barratt to 644p from 851p, while Berkeley's was reduced to 4,703p from 6,212p. Jefferies cut the price target on Bellway to 3,339p from 4,187p.





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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

BKG Market Data

Currency UK Pounds
Share Price 4,275.00p
Change Today 9.00p
% Change 0.21 %
52 Week High 4,457.00
52 Week Low 3,165.00
Volume 223,276
Shares Issued 108.44m
Market Cap £4,635.61m
Beta 0.04
RiskGrade 234

BKG Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
32.59% below the market average32.59% below the market average32.59% below the market average32.59% below the market average32.59% below the market average
69.23% below the sector average69.23% below the sector average69.23% below the sector average69.23% below the sector average69.23% below the sector average
Price Trend
36.02% above the market average36.02% above the market average36.02% above the market average36.02% above the market average36.02% above the market average
55.56% above the sector average55.56% above the sector average55.56% above the sector average55.56% above the sector average55.56% above the sector average
Income
36.08% above the market average36.08% above the market average36.08% above the market average36.08% above the market average36.08% above the market average
4.76% above the sector average4.76% above the sector average4.76% above the sector average4.76% above the sector average4.76% above the sector average
Growth
73.69% below the market average73.69% below the market average73.69% below the market average73.69% below the market average73.69% below the market average
61.54% below the sector average61.54% below the sector average61.54% below the sector average61.54% below the sector average61.54% below the sector average

What The Brokers Say

Strong Buy 4
Buy 5
Neutral 4
Sell 3
Strong Sell 0
Total 16
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

BKG Dividends

  Latest Previous
  Interim 2nd Interim
Ex-Div 18-Aug-22 04-Mar-21
Paid 09-Sep-22 19-Mar-21
Amount 21.25p 9.13p

Trades for 07-Feb-2023

Time Volume / Share Price
16:45 28 @ 4,262.00p
16:45 28 @ 4,262.00p
16:35 154,493 @ 4,275.00p
16:35 360 @ 4,275.00p
16:35 325 @ 4,275.00p

BKG Key Personnel

CEO Robert C G Perrins
Finance Director Richard Stearn

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