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Investing.com - Deutsche Bank raised its price target on Cairn Homes PLC (LON:CRN) to GBP2.00 from GBP1.90 on Thursday, while maintaining a Buy rating on the stock.
The price target increase follows Cairn Homes’ upgraded guidance and reflects Deutsche Bank’s revised earnings forecasts, which show 3% higher EPS for FY25 and 5% higher for FY26.
Deutsche Bank noted that while Cairn’s profits decreased year-over-year in the first half as the company returns to a more normal annual profile, the homebuilder has significantly increased its build investment during the period to target growth in the private market.
The investment bank highlighted that Cairn’s selling season has been strong, with the order book increasing approximately 70%, supporting the company’s capital-intensive strategy in the private market.
Deutsche Bank forecasts Cairn will deliver a 15.5-16.0% return on tangible equity through the forecast period while growing earnings per share at double-digit rates, with the new price target reflecting higher net tangible asset value forecasts at an unchanged 1.75x target multiple.
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