MJ Gleeson not your average housebuilder
The market is wrong not to set MJ Gleeson (GLE) apart from its housebuilding and regeneration peers, says Liberum.
Analyst Charlie Campbell retained his ‘buy’ recommendation and target price of 830p on the stock, which fell 2.7% to close at 477p on Friday.
The group reported full-year earnings per share grew 34%, as it sold 10% more homes at 15% higher prices.
‘Demand for its low-cost homes remains robust and this will continue as its homes are 40% cheaper than peers and it is cheaper to buy than to rent,’ said Campbell.
‘We nudge up 2023 estimates and expect profit growth as outlets increase and demand holds up.’
He said this made the market ‘wrong not to differentiate MJ Gleeson’ from its peers ‘as demand will hold up better at low price points, especially in the north where affordability is much less stretched’.
‘We see over 80% total shareholder return upside to our…target price,’ he said.