Home-builder Barratt (GB:BDEV) has said that its annual adjusted pre-tax profit will be in the range of £1.05-£1.06 billion for the year ending 30 June – beating analyst estimates.
Chief Executive David Thomas, said, “While there are clearly macro-economic uncertainties ahead, the housing market remains robust.”
In the previous year, Barratt reported a profit of £919.7 million pounds.
Home completions fall short
Shares dipped on the news that the company’s home completions fell short of a target announced in February, with 17,908 completed this year (compared to 17,243 the previous year).
Richard Hunter, head of markets at Interactive Investor, said: “The share price has languished in line with its peers across the sector.
“Over the last year, the shares have fallen by 33 per cent, as compared to a marginal gain of 0.9 per cent for the wider FTSE 100, while the price is down by 47 per cent compared to the recent peak achieved just prior to the pandemic in February 2020.
“Even so, with an undemanding valuation by historical standards and with prospects firmly intact… makes Barratt’s the preferred play in the sector at present.”
View from the City
According to TipRanks’ analyst rating consensus, Barratt stock has a Moderate Buy rating based on four Buy and two Hold ratings from two analysts
The average Barratt price target of 729.83p implies 56.78% upside potential.
Conclusion
The housing sector has seen pressures including increased costs, but Barratt’s profit figures should reassure investors.
