- Berkeley Group Holdings (The)
- 08 May 2024 17:20:57
Source: Sharecast
JPM said: "Overall, despite the backdrop of a likely subdued 2024E from an operational perspective, we take a more positive stance on the sector this year, as we see scope for likely positive sentiment/newsflow from the upcoming UK election (with housing expected to be a key focus) before positioning for a recovery in 2025E, likely aided by rate cuts.
"Furthermore, irrespective of which political party wins the upcoming election, we expect the Government to increasingly focus on boosting affordable housing and reforming the planning system in coming years."
The bank lifted its stance on Barratt Developments, Persimmon and Taylor Wimpey to ‘overweight’ from ‘neutral’. The price targets were upped to 560p from 370p, to 1,510p from 1,190p and to 150p from 101p, respectively.
JPM upgraded Redrow to ‘neutral’ from ‘underweight’, bumping up the price target to 760p from 410p.
Vistry was upgraded to ‘overweight’ from ‘underweight’ and the price target hiked to 1,380p from 580p.
The bank said it sees Persimmon, Taylor Wimpey and Vistry as key beneficiaries of boosting affordable homes/reforming planning.
As far as Barratt is concerned, JPM said it sees an attractive entry-point given the year-to-date move (-19%) and compelling investment case with the proposed acquisition of Redrow (subject to closing).
JPMorgan downgraded Bellway and Berkeley to ‘neutral’ from ‘overweight’ and lifted the price target on Bellway to 2,780p from 2,170p.
