MJ Gleeson (GLE)

Sector:

Construction and Building Materials

Index:

FTSE Small Cap

520.00p
   
  • Change Today:
      8.00p
  • 52 Week High: 654.00
  • 52 Week Low: 438.00
  • Currency: UK Pounds
  • Shares Issued: 58.43m
  • Volume: 41,441
  • Market Cap: £303.83m
  • RiskGrade: 213
  • Beta: 0.04

Berenberg upgrades Taylor Wimpey to 'buy'

By Abigail Townsend

Date: Wednesday 05 Jun 2024

LONDON (ShareCast) - (Sharecast News) - Berenberg has upgraded Taylor Wimpey to 'buy' following a review of UK housebuilders ahead of next month's general election.

In a note published on Wednesday, the bank said: "The UK has not built enough houses for years, but with the general election likely to deliver a pro-housing Labour government, coinciding with an improving UK economic outlook, we think this can change over the next five years."

It upgraded Taylor Wimpey to 'buy' from 'hold' based on its leverage to a multi-year volume recovery, land bank length, dividend yield and valuation.

Peers Berkeley Group, Crest Nicholson and MJ Gleeson were maintained at 'buy'.

In its base case scenario, Berenberg forecast a "steady recovery" in housing demand post 4 July, with 6% growth in housing starts per annum from 2025-29, resulting in 2029 starts at 207,000.

Other scenarios considered include the reintroduction of Help to Buy, and a change in the private/social mix of new developments. Currently standing at around 80/20, Berenberg noted that it could move as high as 50/50 under a Labour government.

It also suggested a fourth scenario, where the newly elected government takes a "more radical approach for the revitalisation of the historical model of state-led housebuilding".

It continued: "We envisage a development model where the state is the capital provider with build work undertaken by contracts on a fee model.

"While complex to implement, we think such a policy would be the smartest way to achieve significant growth in both total and social housing."

Berenberg said that should this scenario emerge, Kier Group could be a beneficiary. The broker currently has a 'buy' rating on the construction firm, "valued on a base case discounted cash flow, sense-checked against suitable peer multiples".

As at noon BST, shares in Taylor Wimpey were up 1% at 151.8p while Keir was largely flat at 145.8p.

Berkeley was up 1% at 5,295p, while Crest Nicholson and MJ Gleeson were largely unchanged at 243.2p and 565.4p respectively.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

MJ Gleeson Market Data

Currency UK Pounds
Share Price 520.00p
Change Today 8.00p
% Change 1.56 %
52 Week High 654.00
52 Week Low 438.00
Volume 41,441
Shares Issued 58.43m
Market Cap £303.83m
Beta 0.04
RiskGrade 213

MJ Gleeson Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
28.55% below the market average28.55% below the market average28.55% below the market average28.55% below the market average28.55% below the market average
31.58% below the sector average31.58% below the sector average31.58% below the sector average31.58% below the sector average31.58% below the sector average
Price Trend
30.74% above the market average30.74% above the market average30.74% above the market average30.74% above the market average30.74% above the market average
17.95% below the sector average17.95% below the sector average17.95% below the sector average17.95% below the sector average17.95% below the sector average
Income
58.08% below the market average58.08% below the market average58.08% below the market average58.08% below the market average58.08% below the market average
69.23% below the sector average69.23% below the sector average69.23% below the sector average69.23% below the sector average69.23% below the sector average
Growth
87.92% below the market average87.92% below the market average87.92% below the market average87.92% below the market average87.92% below the market average
72.97% below the sector average72.97% below the sector average72.97% below the sector average72.97% below the sector average72.97% below the sector average

What The Brokers Say

Strong Buy 4
Buy 3
Neutral 0
Sell 1
Strong Sell 0
Total 8
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

MJ Gleeson Dividends

  Latest Previous
  Interim Final
Ex-Div 06-Mar-25 24-Oct-24
Paid 04-Apr-25 22-Nov-24
Amount 4.00p 7.00p

Trades for 30-May-2025

Time Volume / Share Price
16:35 33,252 @ 520.00p
16:35 351 @ 520.00p
16:35 328 @ 520.00p
16:35 244 @ 520.00p
16:35 28 @ 520.00p

MJ Gleeson Key Personnel

CFO Stefan Allanson
CEO Graham Prothero

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