Charlie Campbell, an analyst from Stifel Nicolaus, maintained the Buy rating on MJ Gleeson PLC (GLE – Research Report). The associated price target remains the same with p630.00.
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Charlie Campbell has given his Buy rating due to a combination of factors that suggest MJ Gleeson PLC is well-positioned for future growth. The company demonstrated resilience despite a challenging first half, where adjusted profit before tax fell by 50% due to timing issues with land sales and some pressure on home margins. However, the outlook for the second half is optimistic as the Homes segment is set to benefit from an increased order book, additional site openings, and an improved sales rate.
Moreover, the Land segment is anticipated to perform significantly better in the latter half of the year with several sites expected to be sold. MJ Gleeson’s strong focus on the northern regions and first-time buyers, where demand remains robust and competition is limited, enhances its growth prospects. The company’s ability to self-fund growth due to low land costs and the relative affordability of northern house prices compared to the rest of the UK also support the Buy rating, indicating potential for strong returns.