The Berkeley Group Holdings plc·Consumer Cyclical

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RBC Capital Markets has upgraded Barratt Redrow PLC (LSE:BTRW) to 'outperform' and Berkeley Group Holdings PLC (LSE:BKG) to 'sector perform', while slashing price targets across the sector by an average of 25%. Barratt, upgraded from 'sector perform' with a revised 350p target, is seen as oversold following a difficult period of post-merger integration with Redrow.

The house builder said it was unlikely to be able to make its required rate of return on investment in new land acquisitions due to rising tax and regulatory burdens on residential developments.

Berkeley Group Holdings PLC's (LSE:BKG) latest trading update broadly supports market expectations, Citi highlights, with the housebuilder reiterating guidance for about £450 million in pre-tax profit for fiscal 2026 and a similar level in fiscal 2027. The construction group also guided to year-end FY26 net cash of around £300 million, including a £250 million paydown of land creditors, reinforcing the balance-sheet strength that remains central to the investment case.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Berkeley Energia Ltd (LSE:BKY, ASX:BKY) shares found support on Wednesday, rising 8.7% to 25p, as the company, which is locked in a legal dispute with Spain, released interim financial results that confirmed robust cash resources. Cash reserves stood at A$68.4 million at period-end, down from A$73.6 million at 30 June, with no debt on the balance sheet.
The Berkeley Group Holdings plc, together with its subsidiaries, engages in the residential-led and mixed-use property development activities in the United Kingdom. It operates under the Berkeley, St Edward, St George, St James, St Joseph, and St William brand names. The company was founded in 1976 and is headquartered in Cobham, the United Kingdom.
Consumer Cyclical
Residential Construction
2,610
2014-07-01
1.25