Bellway PLC (LSE:BWY) shares rose in early trading on Tuesday after the housebuilder reaffirmed its full-year targets, citing a solid start to the second half and improved demand from buyers.
Analysts at Stifel said a “dull” Spring Statement from Chancellor Rachel Reeves on Wednesday could prove “cathartic” for the company and the wider sector.
The FTSE 250 group reported a 12% rise in pre-tax profits to £150.2 million for the six months to the end of January, helped by an 11.9% increase in housing completions to 4,577 homes.
Chief executive Jason Honeyman said the market had picked up since the turn of the year, with customer enquiries and reservations on the rise.
Bellway has kept its target of delivering 8,500 homes this financial year, up from 7,654 in 2024, and expects further growth in 2026. The average selling price in the first half was £310,600, reflecting stable pricing conditions and steady demand.
In early trading, the stock was up 19.36p at 2,431.36p.
Peel Hunt pointed out valuation is modest compared to Bellway's expected future profits and asset value. It rates the stock 'add' with a 3,000p price target.