*
skip to Main Content
enquiries@thearmchairtrader.com

After a disastrous 2018, Berkeley Group shares rebounded quite sharply in early 2019, climbing from £34.53 to £40.02 by the start of March, the first time the FTSE 100 housing stock had crossed that key level for the first time in over 8 months.

Since then, however, it has been caught out by the UK’s ongoing, never-ending Brexit uncertainty. News that house price growth was at its lowest level in almost 6 years dragged it away from £40 in late-March, sparking a steady decline that sped up once again during the speculation that eventually led to Theresa May’s resignation. Berkeley Group shares now sit at a current trading price of £35.95.

Back in mid-March, Berkeley said that the trading environment ‘remains consistent with that experienced over the last 2 years’, with that stability allowing the firm to ‘reiterate the updated pre-tax profit guidance’ for this and the next 2 years, which represented  ‘an increase of around 8% in the guidance for the current year.’

As for Brexit, the company alluded to the ‘potential for short-term market dislocations’ arising from the ‘current political backdrop’, but stated it was ‘steadfast’ in its belief in the long-term resilience of its markets in London, Birmingham and the South-East.

In terms of its full year results on Wednesday 19th June, analysts are expecting Berkeley to post a near -28% slide in pre-tax profit to £674 million. Word on how the current trading year has started could also come to dictate how investors react, given the UK is still trapped in Brexit limbo.

Berkeley Group shares have a consensus rating of ‘Hold’ alongside an average target price of £37.44.

This article is brought to you in association with Spreadex. All opinions expressed in this article are from the author and do not necessarily represent the opinions of The Armchair Trader. You can find out more about Spreadex products and services here, or find more articles from Connor Campbell here.

Share this article

Connor Campbell

Connor joined Spreadex in 2014 as part of a newly expanded financial analyst team after graduating from the University of Southampton with an MA in English. His focus is on providing Spreadex's customers with up-to-date and informative news, and is responsible for the market analysis found on the Spreadex website.

Connor produces three daily market updates, a daily stock earnings preview, a weekly financial market preview piece every Friday, a round-up of all the big financial stories making the weekend press every Monday morning and regular stock market features.

Oops! We could not locate your form.

Oops! We could not locate your form.

Oops! We could not locate your form.

Oops! We could not locate your form.

Oops! We could not locate your form.

Sign up for our daily morning digest

Stay ahead with our latest market analysis and insight, direct to your inbox every weekday morning at 8am

  • This field is for validation purposes and should be left unchanged.

 

Market insight and analysis, direct to your inbox

  • This field is for validation purposes and should be left unchanged.

 

Back To Top