This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Bellway is trading at 1316p, up 3.5% on the day, after the investment bank reiterated an ‘overweight’ rating of the stock. Not only did the firm confirm its buy rating, but it also issued a price target of 1450p. On Monday of last week Deutsche Bank maintained its ‘hold’ rating for the company, and the German finance house has given a price target of 1503p for the housebuilder.
Bellway has performed well over the past year, and the stock has risen 41% in the past 12 months. Increased lending to homebuyers by banks, along with the government’s ‘help to buy’ scheme, has boosted the share price. During the credit crisis of 2008 the stock was hit hard, as reduced liquidity made it difficult for customers to get mortgages. This morning it was revealed that the number of mortgages in the UK is now at its highest level since February 2008, indicating an increased appetite from homebuyers. The government’s scheme is assisting first-time buyers to get on the property ladder, and Bellway is benefiting from this initiative as the properties must be new developments.