In a report released today, Charlie Campbell from Stifel Nicolaus maintained a Hold rating on Bellway (BWY – Research Report), with a price target of p2,500.00.
Charlie Campbell has given his Hold rating due to a combination of factors influencing Bellway’s current and future performance. The company’s recent H1 results were in line with expectations, showing a 12% increase in unit completions and adjusted profit before tax. However, despite these positive indicators, the overall estimates have been left largely unchanged, suggesting that while there is growth, it may not be substantial enough to warrant a more optimistic rating.
Another significant factor in the Hold rating is the recent appointment of a new CFO, Shane Doherty, who is focusing on improving capital efficiency and returns on capital employed (ROCE). While this strategic shift is promising, the full impact of these changes is yet to be realized. Additionally, Bellway’s shares are trading at a discount compared to the sector, reflecting its relatively weaker post-tax return on equity. The target price has been slightly increased, indicating some optimism about future return improvements, but not enough to upgrade the rating from Hold.
According to TipRanks, Campbell is ranked #8821 out of 9407 analysts.