Financial Trading Blog
Stock of the day 11/12/2014 – Bellway PLC
With George Osborne announcing reforms to stamp duty charges that helps potential home-buyers save thousands, property developers like Bellway look set to reap the benefits as buying becomes a more attractive proposal.
This news come after a so-far successful year for the Newcastle-based developer, as the company grew on the markets from a 2014 low of 1333.5 to a yearly high of 1965.5 at the start of December, the company’s highest ever shares price. This rise has been consistent since the start of the year, as Bellway also managed to quickly recover from the index-wide slump on the FTSE in mid-October. This rally was aided by the announcement of a 34% growth in revenue to £1.4 billion in its October earnings release, alongside pre-tax profits up 75% to £246 million.
As Bellway prepares for its statement on Friday, analysts have largely been positive about the stock. Eleven anaylsts, including Citigroup and Goldman Sachs, have given the stock a ‘buy’ rating; whilst six have said ‘hold’, including Deustche Bank. This was joined by a report from Numis, where analysts said that: “we expect Bellway to report that whilst the housing market has moderated it is still selling more houses than last year, due to the growth in the number of outlets.”
With the property sector undergoing a recent rally due to Osborne’s Autumn Statement announcement, Bellway will be looking to capitalise on this, continuing its strong year and closing 2014 in style.
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