Berkeley Group Holdings PLC (LSE:BKG) will likely offer upbeat guidance and reassurance on 2024 trading in preliminary results on Wednesday according to Jefferies analysts.
“Strong increases in asking prices” should bode well for the FTSE 100-listed housebuilder, analysts noted, which may well “offer upside” to guided pre-tax profits of £1.05bn for the coming two years.
Berkeley expects pre-tax profits to sit at £600mln for the year to April, meanwhile, up almost 9% from the £551.5mln recorded in 2022.
According to UBS analysts, Berkeley should just outdo pre-tax profit guidance by £2mln, alongside panning a 7% increase on last year's revenue to £2.5bn.
Completions should also rise by over 6% to 4,000, UBS noted, with 2024’s cumulative pre-tax profit guidance of £1.05bn also unlikely to be changed.
Rules for a second staircase to be built in new building over 30 metres in London “could have implications” on Berkeley though, Jefferies warned, especially if these were introduced across England.
This could hit “the timing of build out of the group's developments and future profitability,” analysts said, given Berkeley’s suggestion in March that tower projects could be side-lined if the rules were indeed implemented.
“We believe there is risk of investor concern on the future delivery and longer-term business plan of the group,” Jefferies added.
Berkeley’s was given a ‘hold’ rating by the investment bank, alongside a share price target of 4,300p.
UBS labelled the housebuilder a 'buy' meanwhile, offering a higher price target of 4,580p.