Broker snap: Panmure raises Berkeley's target by a fifth

24th Jun 2011 11:53

Berkeley Group produced an excellent set of full-year results, according to Panmure Gordon, who boosts its target price for the house builder by a fifth."Berkeley Group has produced an excellent set of full year results which in our opinion reflects the strength of its landbank, as well as market conditions in the better locations of London and the South East," said analysts Mark Hughes and Rachael Waring.Pre-tax profit of £136.2m beat estimates of £131.2m, while earnings per share (EPS) came in at 72.1p, above forecasts of 70.5p."The company has also announced the results of its strategic review in which it sets out its vision for investment and returning cash to shareholders through the next cycle."The broker places its forecasts under review but anticipates raising its EPS estimates for the current year by 5%.A 'hold' is maintained, but the target price is raised from 911p to 1,100p.---BC