Berkeley Group Holdings (The) (BKG)

Sector:

Household Goods

Index:

FTSE 100

4,204.00p
   
  • Change Today:
      59.00p
  • 52 Week High: 4,457.00
  • 52 Week Low: 3,165.00
  • Currency: UK Pounds
  • Shares Issued: 108.44m
  • Volume: 246,424
  • Market Cap: £4,558.62m
  • RiskGrade: 234

Jefferies sees 100% yield at Berkeley Group over seven years, upgrades to 'buy'

By Alexander Bueso

Date: Friday 22 Apr 2022

LONDON (ShareCast) - (Sharecast News) - Analysts at Jefferies upgraded their view on Berkeley Group Holdings and hiked their target price, arguing that the shares weren't discounting an expected step-up in the company's capital returns nor higher returns on equity.
Yes, the homebuilder's earnings could be lumpy because of its efforts to maximise the value of its land bank.

However, its St.William joint-venture was fast forwarding land buying, investment in its regen sites was topping out, working capital was set to inflect in coming years, as was delivery.

Those factors were expected to drive a "meaningful" step up in capital returns, to the tune of a 100% yield over seven years, and lift the company's return on equity back above 20.0%.

But neither of those two outcomes was reflected in the shares' valuation.

Hence, they upgraded their recommendation from 'hold' to 'buy' and revised their target price from 4,703.0p to 5,587.0p.

As an aside, they noted that incorporating the recent acquisition of St.William into their estimates had led them to bump up their forecast for fiscal year 2024 profit before tax by 5.0%, putting Jefferies 10.0% ahead of the consensus, which had yet to incorporate that purchase.

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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 4,204.00p
Change Today 59.00p
% Change 1.42 %
52 Week High 4,457.00
52 Week Low 3,165.00
Volume 246,424
Shares Issued 108.44m
Market Cap £4,558.62m
RiskGrade 234

BKG Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
31.84% below the market average31.84% below the market average31.84% below the market average31.84% below the market average31.84% 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
4.24% above the market average4.24% above the market average4.24% above the market average4.24% above the market average4.24% above the market average
33.33% above the sector average33.33% above the sector average33.33% above the sector average33.33% above the sector average33.33% above the sector average
Income
35.14% above the market average35.14% above the market average35.14% above the market average35.14% above the market average35.14% above the market average
Sector averageSector averageSector averageSector averageSector 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 5
Sell 2
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 01-Feb-2023

Time Volume / Share Price
16:38 3,113 @ 4,205.25p
16:35 133,134 @ 4,204.00p
16:35 155 @ 4,204.00p
16:35 617 @ 4,204.00p
16:35 794 @ 4,204.00p

BKG Key Personnel

CEO Robert C G Perrins
Finance Director Richard Stearn

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