Bellway PLC (LSE:BWY) is one of the best positioned among the housebuilders to recover once conditions in the market improve - but that is unlikely to be for at least a year, believes Deutsche Bank
In a trading update last week, Bellway indicated sales rates are improving year-on-year with outlets up against a difficult planning environment.
“We expect a strong year-end order book, which should provide a platform for above-average profit growth in FY25/26," analysts at Deutsche.
“While we forecast Bellway to generate low returns versus history, it looks better placed to rebuild these than peers, which in our view, is not reflected in its 10% discount to 2026 NTAVps [net asset value per share]."
Bellway has a 'buy' rating and a target of 3,013p.
Shares today were down 1.5% at 2,724p.