Housebuilders might enjoy a big rebound in 2023, according to Jefferies, which added its voice to a bullish chorus building ahead of an imminent round of updates and results (see here).
The broker notes that share prices across the sector are already up 12% since the end of last October, but adds that with prices still languishing at between 10-35% below tangible assets, there is “an opportunity”.
“And we believe updates in the sector through the first quarter of 2023 could provide the catalyst.”
Bellway, Taylor Wimpey and Berkeley are the broker’s top picks though it adds the sector is fairly homogenous.
Shares in Berkely rose 0.6% to 4,113p.