In key news on UK stocks, Bellway PLC (GB:BWY) shares gained 1.5%, as of writing, after the company upgraded its selling price outlook amid the ongoing recovery in the UK housing market. As stated in its trading update, the company anticipates an average price of £305,000 in FY24, marking an increase from the previous guidance of £295,000. The company also mentioned that the upgrade was mainly driven by product mix changes.
Bellway is a British property developer, specializing in residential properties.
Bellway’s Favourable Outlook
Bellway delivered strong performance in the current fiscal year, supported by improved affordability and a seasonal boost in the spring. Additionally, the UK housebuilding sector is gaining traction as mortgage rates have eased slightly, fueled by the anticipation that the Bank of England will soon lower interest rates. As a result, the company is confident of delivering 7,500 homes in the full year.
Meanwhile, the company’s forward book has grown from 4,411 homes at the beginning of the current financial year to 5,346 homes as of June 2, 2024. On the back of these favourable numbers, the company is expecting to return to growth in 2025.
However, in the short term, the company anticipates a temporary impact on trading due to the UK elections scheduled on July 4.
Bellway will announce a full-year trading update for FY24 on August 9.
Are Bellway Shares a Good Buy?
BWY stock has received a Moderate Buy consensus rating on TipRanks, backed by three Buy and two Hold recommendations. The Bellway share price forecast is 2,954.60p, which is 4.5% higher than the current trading level.
