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Investing.com - RBC Capital upgraded Berkeley Group (OTC:BKGFY) Holdings Plc. (LON:BKG) (OTC:BKGFF) from Sector Perform to Outperform on Wednesday, while raising its price target to GBP49.00 from GBP45.50.
The upgrade comes as RBC Capital notes that UK government efforts to stimulate the housebuilding sector have not yet produced significant results, creating favorable conditions for Berkeley’s business model.
According to RBC Capital, current market challenges including falling reservation rates and potential autumn tax increases that could dampen domestic demand actually benefit Berkeley’s position in the market.
The investment firm highlighted that Berkeley does not need to open new development sites to meet financial estimates, giving it an advantage over competitors who may be struggling with current market conditions.
RBC Capital also pointed to Berkeley’s large forward order book and its customer base of high-income earners and international buyers as key strengths that support the improved outlook for the company.
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