Berkeley Group Holdings (The) (BKG)

Sector:

Household Goods

Index:

FTSE 100

3,810.00p
   
  • Change Today:
      12.00p
  • 52 Week High: 4,903.00
  • 52 Week Low: 3,165.00
  • Currency: UK Pounds
  • Shares Issued: 108.69m
  • Volume: 55,211
  • Market Cap: £4,141.20m
  • RiskGrade: 234

Berenberg downgrades raft of housebuilders, upgrades Berkeley

By Michele Maatouk

Date: Monday 12 Sep 2022

LONDON (ShareCast) - (Sharecast News) - Berenberg reviewed its ratings on a host of UK housebuilders on Monday as it warned that 2023 will likely be the toughest operating environment for the industry since the Global Financial Crisis.
"We think that there will be a combination of negative headwinds emerging simultaneously," it said.

"Firstly, we expect the companies in the sector to endure significant margin erosion as we think that price growth (0%) will lag build cost inflation (5%). The most significant driver of this reduced pricing power will be a decline in affordability as we think that the combination of higher mortgage rates and cost-of-living increases will mean that mortgage costs increase to 50-55% of an annual salary, on average, compared to the 20-year average of 36%.

"Furthermore, the end of the Help to Buy scheme - which has provided significant support for first-time buyers - as well as the spectre of rising unemployment, will act as a drag on price and volume momentum."

The bank downgraded Barratt Developments, Bellway, Crest Nicholson, Persimmon, Redrow, Taylor Wimpey and Vistry to 'hold' from 'buy'.

Berenberg upgraded Berkeley Group to 'buy' from 'hold', saying it believes that it can meet its mid-term profit guidance, that it offers upside risk on capital returns and it is strategically very well positioned.

The bank maintained its 'buy' on MJ Gleeson, saying it thinks the company will deliver a structurally higher growth rate, alongside its better pricing power versus its peers given its historic under-pricing of the product.

"In general, we have a broadly neutral view of the UK housebuilding sector," it said.

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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 3,810.00p
Change Today 12.00p
% Change 0.32 %
52 Week High 4,903.00
52 Week Low 3,165.00
Volume 55,211
Shares Issued 108.69m
Market Cap £4,141.20m
RiskGrade 234

BKG Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
27.1% below the market average27.1% below the market average27.1% below the market average27.1% below the market average27.1% below the market average
70.37% below the sector average70.37% below the sector average70.37% below the sector average70.37% below the sector average70.37% below the sector average
Price Trend
23.41% below the market average23.41% below the market average23.41% below the market average23.41% below the market average23.41% below the market average
57.14% above the sector average57.14% above the sector average57.14% above the sector average57.14% above the sector average57.14% above the sector average
Income
40.78% above the market average40.78% above the market average40.78% above the market average40.78% above the market average40.78% above the market average
9.09% below the sector average9.09% below the sector average9.09% below the sector average9.09% below the sector average9.09% below the sector average
Growth
71.77% below the market average71.77% below the market average71.77% below the market average71.77% below the market average71.77% below the market average
85.19% below the sector average85.19% below the sector average85.19% below the sector average85.19% below the sector average85.19% below the sector average

What The Brokers Say

Strong Buy 5
Buy 6
Neutral 4
Sell 2
Strong Sell 0
Total 17
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 09-Dec-2022

Time Volume / Share Price
12:08 34 @ 3,810.00p
12:08 10 @ 3,809.00p
12:06 12 @ 3,808.00p
12:06 80 @ 3,808.00p
12:05 17 @ 3,810.00p

BKG Key Personnel

CEO Robert C G Perrins
Finance Director Richard Stearn

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