Jefferies raises Bellway price target to 2,827 (2,779) pence - 'buy' |
Berenberg cuts Bellway price target to 2,300 (2,500) pence - 'hold' |
 Bellway offers significant value, says Jefferies
Bellway (BWY) provided ‘little surprise’ in its full-year results, but the ‘next potential catalyst’ could be around the corner, says Jefferies.
Analyst Glynis Johnson retained her ‘buy’ recommendation and target price of £27.89 on the Citywire Elite Companies A-rated stock, which gained 3.3% to £22.34 on Tuesday.
Most components of the 2023 year results had already been announced and Johnson said there was ‘significant value’ in the property developer.
Although the results provided ‘gives and takes’, she said that they are ‘unlikely to drive an urgency to own the stock’ given the slow recovery in trading offsetting ‘improving trend and resilient pricing’.
‘We think the next potential catalyst may just be around the corner: potential new customer support from government at the November Budget – driving selling rate and confidence in pricing – or an organic pick-up in selling rate from lower mortgage rates or the spring selling season,’ she said.
citywire.com |
JPMorgan cuts Bellway price target to 2,170 (2,300) pence - 'overweight'
RBC cuts Bellway price target to 3,400 (3,500) pence - 'outperform' |
Much as expected |
covid caused unprecedented demand
meaning prices doubled overnight, due to 80% of timber being
imported to UK
BofE please note this is one of the main causes of present inflation
putting up rates does not solve the problem, |
RBC starts Bellway with 'outperform' - price target 3,500 pence |
£35K! I suggest you get another quote(s)! |
the days of buying a so called bargain on "Homes under the Hammer" are gone
just to expensive, upvc windows 35k plus to replace, for an average size prop
better to buy a freehold quality built new house, with no management fees
edit
windows,kitchen, boiler,heat pump,bathroom,shower room,insulation, floors,
electrics will need re-placing at a total cost of around 100k plus
on a average 4bed every 25yr or every 20yrs on a buy to let |
Just checked to see where we are with the buy back programme.
To reiterate at the last AGM permission given to do £100m programme.
The first £50m tranche started on March 28 and finished on June 16th ie about 10 weeks with all the bank holidays and the second £50m tranche started on June 19 and has to finish by November 16. At say £21 a share, 2.38m will be bought back and cancelled in this second tranche . As of the RNS this morning 1.56m has been bought back in this second tranche so we are on track to do it by November 16.
My understanding is that 2.14m shares were bought back in the first tranche but then of course prices were higher.
Good that it is foreseen that there will be no change in the dividend and we await October 17 results announcement. |
Bellway snaps up Danescroft’s £35m development site in Virgina Water |
Tipped in DTelegraph today
'Times are tough for housebuilders, but this stock will survive and prosper'
Questor share tip: this stock has the wherewithal to prepare the ground for bumper profits in the next housing cycle
Hold |
Berenberg cuts Bellway target price
The tough property market will continue to hit trading at housebuilder Bellway (BWY), but there are some signs of stability emerging, believes Berenberg.
Analyst Harry Goad retained his ‘hold’ recommendation and reduced the target price from £27 to £25 on the Citywire Elite Company, which retreated 0.9%, or 20p, to £21.38 on Tuesday.
‘The housing market clearly remains extremely challenging and will continue to impact on trading well into Bellway’s next financial year,’ Goad said.
‘However, we do now think that signs of relative stability are emerging and we think that a trough will be reached in terms of market volumes and prices in late 2023.’
Goad is not expecting a ‘rapid market recovery’ as affordability remains a headwind into and through 2024.
‘In this context, we retain our ‘hold’ rating on Bellway as – while we see limited downside – we also see more compelling valuations elsewhere in the sector. We do, however, acknowledge Bellway’s attractive dividend yield and the company’s balance sheet strength,’ he said.
citywire.com |
Berenberg cuts Bellway price target to 2,500 (2,700) pence - 'hold' |
I saw this on Citywire.
Regret I did not sell at 2400 some months back but
happy to remain with what I have and do not see myself buying or selling
in the foreseeable future.
quote
Peel Hunt cuts Bellway price target
Tough trading over the last couple of months for Bellway (BWY) and a 44% year-on-year fall in the order book have led Peel Hunt analyst Sam Cullen to cut the target price for the housebuilder.
‘There were few surprises where FY23 was concerned,’ Cullen said. Revenues are expected to be £3.4bn, and operating margins 16%, implying operating profits of £545m, in line with current consensus.
Net cash ended the period at £232m (£245m last year), with average cash of £192m. A total dividend of 140p is expected, in line with the prior year and the £100m buyback is progressing well.
‘At £22.16, the shares trade on 0.74 times CY24E PTNAV and offer a 6% dividend yield,’ Cullen said. ‘Our target price falls from £26.40 to £25.80, but we retain our ‘buy’ recommendation. Bellway remains one of our most preferred housebuilders due to its strong track record, high discount to TNAV and ability to open new sites should the backdrop improve.’
The shares rose 0.8%, or 18p, to £22.14 on Thursday. |
UBS cuts Bellway price target to 2,530 (2,570) pence - 'buy'
Deutsche Bank cuts Bellway price target to 2,526 (2,727) pence - 'buy'
JPMorgan raises Bellway price target to 2,300 (2,200) pence - 'overweight' |
Housing completions expected to decrease materially.
Bellway cuts jobs in anticipation of UK property market slowdown
Prospect of higher mortgage rates and end of help to buy scheme leads housebuilder to shut two divisions
"Bellway, one of Britain’s biggest housebuilders, has said it is cutting jobs as it anticipates a property market slowdown in the coming year because of higher mortgage rates and the closure of the help-to-buy programme in March.
The construction company said it would shut two of its divisions and slow activity in a third, as it predicted that house completions would “decrease materially” over the next 12 months." |
2023/24 will be a horrible year for Home Builders. The Covid after effects coupled with higher interests, lower growth in China and Ukraine conflict may hurt growth in the West leading to increasing job losses. All this means money will be tighter than before and risks are becoming higher when buying a house.
Deflation: Why falling prices in China raise concerns |
Another bad TU.
Margins down, demand down as predicted.
HBs impacted by end of Help to Buy, where properties using that scheme had to be completed during H2. Therefore, further impact expected going forward.
Private reservations down a massive 35.9%
Avg selling price down.
Affordability a major problem
from TU
"The underlying operating margin is expected to be around 16%(3) (2022 - 18.5%), with the reduction reflecting the effect of build cost and overhead inflation, extended
site durations and the increased use of targeted sales incentives."
"The Group's programme of accelerating the construction of social homes partially offset weaker private demand, which was impacted by higher mortgage rates and the end of Help-to-Buy."
"The overall reservation rate reduced by 28.4% to 156 per week (2022 - 218) and the private reservation rate decreased by 35.9% to 109 per week (2022 - 170)."
"The backdrop of macroeconomic uncertainty and cost of living pressures affected consumer demand during the year and, given affordability remains constrained by higher mortgage interest rates, underlying trading conditions are likely to remain challenging in the near term."
"Total housing completions of 10,945 homes (2022 - 11,198), at an average selling price of GBP310,000 (2022 - GBP314,399)."
sikhthetech - 18 Oct 2022 - 14:28:30 - 636 of 659
Bellway. Demand slowing and another £346.2m for cladding/safety improvements.
House price inflation was just above cost inflation but house prices are expected to fall, so margins are likely to be squeezed.
On top of demand falling. |
Much of a muchness with TW. and VTY |
TU tomorrow. |
Bellway consulting on proposals to cut 90 jobs as housebuilder hit by slump in demand
Two operating divisions could be closed as part of proposals. |
Questor tip:
'This housebuilder’s shares are taking a bashing but they can still chime with value seekers' |
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