Cannacord stays at 'buy' on Bovis Homes going into autumn selling season
Canaccord Genuity stood by its 'buy' recommendation for shares of homebuilder Bovis Homes following what it described as a "solid" trading update.
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Pointing to improved profits and a better cash position, Canaccord said the group's turnaround strategy remained "clearly on track".
"In what appears to be a stable but flat market with little house price inflation, self help will boost margins for the Group and build cost inflation appears to have eased slightly of late," analyst Aynsley Lammin at the Canadian broker said.
Saying that the firm was well forward sold and looked set to follow-through on expectations for the full-year, the analyst added that: "More than £250m has now been squeezed out of the balance sheet optimisation drive, with the JV at Wellingborough boosting cash."
Nevertheless, said Lammin: "We do not expect any material changes to consensus PBT today despite the obvious market risks as we go into the autumn selling season."
Lammin also highlighted the shares' "attractive" 10% yield and told clients that they were trading on a price to book multiple "which looks fair relative to the sector average."
The target price was unchanged at 1,140.0p.