This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
Share price breakout suggests recent range has consolidated June’s declines. on 20 Aug Deutsche Bank said “The time is right to buy shares in 3716p) and highlighting its “strong reputation, upgrades and consistent record of dividend payments”. Solid 4.5% dividend yield.
Risks to Bellway shares include a poor results in October, a UK Houses Price slowdown, the uncertainty of Brexit, the threat of more UK interest rate increases and, of course, broker downgrades.
Brokers/analysts are bullish on the shares with only 5% suggesting Sell. This is supported by 91% of broker price targets suggesting upside from current levels, to a consensus target of 3866p, well above our target of revisiting May/Jun highs of 3436p.
Next Event: Prelim FY Results, 16 Oct; Ex-dividend (late Oct)
Latest Broker 12-Month Consensus: 78% Buy, 17% Hold, 6% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr | |
| Perf % | 3.8 | 5.4 | -5.5 | 0.0 | -0.1 | 34.7 | 20.5 | 85.1 | 126.7 |
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Prepared by Michael van Dulken, Head of Research