LONDON MARKET MIDDAY: Housebuilders Higher As Investors Await Osborne LONDON (Alliance News) - Stocks in London were higher Wednesday midday, led by housebuilders, ahead of the UK Autumn Statement and Comprehensive Spending Review announcement by the [25 Nov '15 12:03]
Standard Life Investment have yesterday increased their holding in Crest Nicholson to above 11%! Bodes well, all the builders look excellent value right now but Crest has got to be one of the top picks, infact I'd say its the all round best buy. Huge landbank relative to targeted build volumes, c. 7 years worth at current build rates of c. 5 years worth at targeted volumes. This massive landbank relative to desired size means land investment is not needed, and can simply be replenished as used, allowing Crest to pay significant dividends whilst have excellent growth prospects too.
Redrow and Bovis are also good shouts, but Redrow needs to invest significantly in land to achieve its EPS targets, whilst Bovis needs to add to the landbank too and is out of favour with the markets at the moment due to poor management. Crest Nicholson is however a market darling, and given the above I see it as the top pick in the sector which must also be why it is rated so highly amongst brokers and Goldman Sachs conviction buy. It is also Investor Chronicles top pick in the sector.
Nov 23, 2015 at 05:00 Polar Capital duo sell in to Consort rally Citywire AA-rated healthcare investors Gareth Powell and Daniel Mahony have sold pharma service business Consort Medical (CRST) into the strength of a rally which has carried it 32% higher over 12 months.
The managers reduced their holding to 3.8% of the company worth £18.2 million at a share price of 977.5p.
The shares are held by their £675 million Polar Capital Healthcare Opportunities fund, one of the most consistent and highly regarded mandates in the health and pharmaceuticals sector.
Cambridge-based Consort provides contract development services to drug companies, in addition to producing disposable medical devices for drug administration.
Canaccord Genuity reiterated its ‘buy’ rating on a price target of £10.54 earlier this month, while Investec also rates it a ‘buy’ on a target of £10.33.
In June results the company reported an 84% increase in revenue to £184 million and profit before tax up 39% to £19.4 million.
"Similarly, southern-focused house builder Crest Nicholson (LSE: CRST) also appears to be a strong buy at the present time. Its trading update for the full year (released today) shows that high levels of employment and good mortgage access are creating favourable trading conditions, with the company stating that unit completions for the full year are due to rise by around 8% to 2,725. Furthermore, Crest Nicholson remains on target to meet its goal of generating £1bn in revenue by 2016 and £1.4bn of revenue by 2019. And, while interest rate rises may be a cause for concern for the company's investors, its price to earnings growth (PEG) ratio of 0.3 indicates that a very wide margin of safety is on offer. Looking ahead, Crest Nicholson is forecast to become a stunning income stock, with dividends per share set to rise by 43% next year. This puts it on a forward yield of 5.4% and, with dividends still due to represent just 46% of profit in 2016, further dividend rises are very much on the cards"
Good results; buy to sell ratio almost 6:1, yet a very muted sp response on a strong update for the market? This is hard to read......I would have expected mm's to push up prices to tease out sellers, to match their books. Time for me to buy more....
And Buy re-iteration from Peel Hunt with 12 month price target of £6.75. Nearly all brokers very bullish on Crest all with price targets significantly above today's' trading price.
"Crest Nicholson Holdings PLC using EPIC/TICKER code LON:CRST had its stock rating noted as ‘Reiterates’ with the recommendation being set at ‘BUY’ this morning by analysts at Peel Hunt. Crest Nicholson Holdings PLC are listed in the Consumer Goods sector within UK Main Market. Peel Hunt have set a target price of 675 GBX on its stock. This would imply the analyst believes there is now a potential upside of 31.8% from the opening price of 512 GBX."
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