Panmure upgrades forecasts for Bovis after 'excellent' results

24th Feb 2014 11:46

Broker Panmure Gordon upgraded its profit and price forecasts for Bovis Homes, saying the house-builder's annual results were excellent.Bovis on Monday said strong demand had fuelled a 48% increase in pre-tax profit in the year to December 31st to £78.8m from £53.2m a year ago on a 31% lift in revenue to £556m.It attributed the increase to strong demand as the UK's housing market recovers and switches to building bigger homes in southern England.Panmure said it now expected Bovis to report 2014 profits of £119.6m, up from its previous forecast of £115.1m.It also raised its price target on the stock to 923p from 900p and kept its 'buy' recommendation."These are excellent results, with increases in volumes, prices and margins," Panmure said.Shares rose 16.5p or 1.8% to 916.5p at 11:50 in London.PW