Deutsche Bank reaffirms Bellway stock Buy rating with positive outlook

Published 10/06/2025, 16:06
Deutsche Bank reaffirms Bellway stock Buy rating with positive outlook

On Tuesday, Deutsche Bank (ETR:DBKGn) analysts reaffirmed their Buy rating on Bellway (LON:BWY) Plc stock, maintaining the price target at £33.62. The analysts noted Bellway’s modest increase in volume and average selling price guidance, which led to a 4% increase in their forecast for fiscal year 2025 profit before tax. This adjustment points to an anticipated 24% year-over-year growth.

The analysts kept their fiscal year 2026 and 2027 forecasts unchanged, citing a solid foundation despite mixed trading conditions. They highlighted Bellway’s focus on capital efficiency, with management planning to update the market on its capital allocation strategy later this year. The expectation is that this will likely result in a significant cash return, possibly through share buybacks.

The report emphasized the improved balance sheet efficiency, strong top-line growth, and improving margins projected for the coming years. According to Deutsche Bank, these factors should lead to a much-improved return on equity for Bellway.

Despite these positive indicators, the analysts believe that the current valuation does not fully reflect these improvements, with the stock trading at 0.85 times the net tangible asset value for fiscal year 2026.

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