Berkeley Group Holdings (The) (BKG)

Sector:

Household Goods

Index:

FTSE 100

4,426.00p
   
  • Change Today:
    -180.00p
  • 52 Week High: 5,552.08p
  • 52 Week Low: 4,256.25p
  • Currency: UK Pounds
  • Shares Issued: 101.94m
  • Volume: 560,193
  • Market Cap: £4,511.82m
  • RiskGrade: 234

HSBC upgrades housebuilders, says market downturn more than priced in

By Michele Maatouk

Date: Thursday 13 Apr 2023

LONDON (ShareCast) - (Sharecast News) - HSBC upgraded its stance on a host of housebuilders on Thursday as it argued that a downturn in the housing market and tepid recovery in return on invested capital are more than priced in to the shares.
The bank upgraded Barratt, Bellway, Crest Nicholson, Persimmon, Redrow and Taylor Wimpey to 'buy' from 'hold'. Their target prices were lifted to 570p from 390p, to 2,700p from 2,030p, to 270p from 230p, to 1,550p from 1,410p, to 670p from 500p, and to 150p from 105p, respectively.

HSBC upgraded Berkeley to 'hold' from 'reduce' and the target price to 4,000p from 3,000p. Finally, it reiterated its 'buy' rating on Vistry and hiked the price target to 1,060p from 900p.

"We now have greater visibility about the shape of the current housing market downturn for the housebuilders' profits and cash flows and their recovery from it, which we believe to be more than priced-in to share prices," HSBC said.

HSBC said its preferred picks, with more than 30% implied average upside, out of its seven buy-rated stocks are partnerships play Vistry, Redrow and national volume builder Taylor Wimpey, all of which trade at large discounts.

"Dividend yields are attractive across the sector, averaging 5.4% to 8.1% in 2023-27e, whilst we see material additional surplus capital potential for Redrow and Persimmon, assuming no year-end indebtedness including land creditors," 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 4,426.00p
Change Today -180.00p
% Change -3.91 %
52 Week High 5,552.08p
52 Week Low 4,256.25p
Volume 560,193
Shares Issued 101.94m
Market Cap £4,511.82m
RiskGrade 234

BKG Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value Not Available
Price Trend
13.12% above the market average13.12% above the market average13.12% above the market average13.12% above the market average13.12% above the market average
8.33% below the sector average8.33% below the sector average8.33% below the sector average8.33% below the sector average8.33% below the sector average
Income Not Available
Growth Not Available

BKG Dividends

  Latest Previous
  Final Special
Ex-Div 27-Jun-24 05-Sep-24
Paid 26-Jul-24 20-Sep-24
Amount 33.00p 174.00p

Trades for 31-Oct-2024

Time Volume / Share Price
17:30 1,514 @ 4,426.41p
16:39 6,830 @ 4,425.97p
16:39 18 @ 4,426.00p
16:39 430 @ 4,426.00p
16:39 430 @ 4,426.00p

BKG Key Personnel

CEO Robert C G Perrins
Finance Director Richard Stearn

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