Bovis is the cheapest stock in housebuilding sector, says Panmure

8th Jul 2014 13:25

Bovis Homes offers the best value in the housebuilding sector, according to Panmure Gordon, which repeated its 'buy' recommendation on the stock following a decent first-half update.Bovis is this cheapest stock in the housebuilding sector, trading on a prospective price-to-net asset value of 1.2 times. "This does not fully reflect the group's excellent track record of strategic land pull-through in our opinion," Panmure said.The broker has upped its target price for the shares from 942p to 953p.Panmure also played down concerns about a recent "slight moderation" in the sales rate, saying this reflects normal seasonality and the fact that Help to Buy was launched this time last year."Bovis has issued a strong trading update and we maintain our above-consensus forecasts, though flag that risk continues to remain on the upside. "A 44% increase in volumes to take forward underpins our belief that Bovis will deliver a strong profit upturn for the full year."The stock was down 1.1% at 781.97p by 12:46.BC