Canaccord stays at 'buy' on Berkeley Group, praises 'extremely good' management
Analysts at Canaccord Genuity stayed at a 'buy' on shares of Berkeley Group despite the recent run-up in the luxury homebuilder's share price.
In particular, the Canadian broker highlighted the outfit's "very strong" cash balance and land bank and forward sold position.
The former two of those attributes supported the firm's multi-year profit guidance and capital return commitments out to 2025, analyst Aynsley Lammin said in a research note sent to clients.
"The Group well to take advantage of how the market develops in 2020 - it has the cash to invest in land if suitable opportunities arise and land bank to ride out further market uncertainty if needed," the analyst added.
Lammin also heaped praise on Berkeley's management team and the company's ability to deliver attractive returns for shareholders throughout the cycle, explaining that it was "again in a great position to manage this current cycle".
"Valuation looks fairer relative to the sector after enjoying a strong share price run recently but the Group is in good shape."
Lammin's 3,850.0p target price for Berkeley Group's shares was unchanged.