Shares in housebuilder Bellway PLC (LSE:BWY) opened higher after a leading investment bank raised the stock valuation and lauded the builder's strategy.
Deutsche Bank moves its target to 3362p, up from 3013p, citing the company's strong position in the UK housing market.
The upgrade reflects Bellway's approach of not pushing for higher volumes in 2024, which, combined with an increase in available outlets and a steady sales rate, is expected to lead to a significant 60% growth in private forward sales by 2025/26.
This puts Bellway ahead of other housebuilders, many of which are struggling to return to pre-COVID order levels.
Given Bellway's solid foundation and growth prospects, Deutsche sees the company's recovery as more secure, justifying the higher price target and maintaining its "buy" recommendation.
In early trading, the shares were up 32p at 3,052p.