Glenveagh Properties has received an upgrade to “buy” from “hold” from Deutsche Bank, which raised its price target on the stock to €2.15 from €1.90.
Analyst Jonathan Coubrough said Glenveagh’s interim results showed a significant improvement in profits and confirmed full-year guidance for earnings per share growth of about 15%.
The company also increased its share buyback program by €20 million, offering what the bank estimated to be an 8% buyback yield in fiscal year 2025.
Deutsche Bank said that it sees upside risk to its forecast return on tangible equity of 13.3% for fiscal 2025, with the figure expected to increase to 14.4% by fiscal 2027.
Shares of the homebuilder have gained 17% so far this year and are currently trading at 1.3 times price-to-net tangible asset value.
Coubrough noted that with profits in the first half showing signs of a maturing profile and consensus forecasts de-risked, the stock could continue to re-rate.
The brokerage also said it was lowering its applied cost of equity from 10% to 9%, bringing its valuation multiple target to 1.5 times price-to-net tangible asset value.
As a result, Deutsche Bank lifted its target price by 13% and raised its recommendation on the stock.
Source :
https://www.investing.com/news/stock-market-news/deutsche-bank-upgrades-glenveagh-to-buy-raises-target-price-to-215-4257164
