No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Deutsche Bank downgraded Berkeley Group to 'hold' from 'buy' on Friday and slashed the price target.
The bank noted that against a backdrop of subdued demand and a challenging regulatory environment, Berkeley has announced that it will cease buying land and will restrict WIP investment to prevailing rates of reservation.
"The consequence of this and continuing challenging markets, is that profit before tax is expected to decline more than 20% between FY26 and FY28," DB said.
"This results in return on equity trending at circa 7%, which alongside lower levels of expected shareholder returns, results in the target price falling to 3,685p (4,600p previously).
"This is marginally below FY26 NTA, which we think balances depressed near-term returns, with potential upside from the PRS venture and a market recovery."
At 1225 BST, the shares were down 1.5% at 3,314.00p.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.