Alpesh Patel New Buy recommendation
Barratt Developments Plc BDEV:LSE BUY
Today we’ve picked the Barrat Developments Plc. as our pick of the day. Barrat Developments Plc. is a holding company. The Company’s principal activities consists of acquiring and developing land, planning, designing and constructing residential property developments and selling the homes it builds. The Company operates in two segments: house building and commercial developments. The Company operates across a spectrum of the market from flats to family homes and urban regeneration schemes. The Company also has a focused commercial developments business. The Company builds a range of homes ranging from those for first-time buyers, to family homes, to high-rise flats and affordable housing. The Company’s house building business trades under the Barratt Homes, David Wilson Homes and Ward Homes brands. The Company’s subsidiaries include BDW Trading Limited, BDW North Scotland Limited, David Wilson Homes Limited and Wilson Bowden Developments Limited.
FUNDAMENTALS AND TECHNICALS
Company Financials
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Stock Price: 403.40 GBX |
Market Capitalization: £3.96bn |
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52-week range: 219.90 – 404.90 GBX |
Shares outstanding: 984.10m |
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P/E (TTM) : 53.64 |
Annual div (TTM) : 2.50GBX |
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EPS (TTM) : 0.0751 GBP |
Annual div yield (TTM) : 0.62% |
Chart
Created using Sharescope Pro
Fundamental and Technical Analysis
Barrat Developments Plc. (BDEV:LSE) is trading at 403.40GBp which is just off the new 52-week high set o Friday at 404.90GBp. The stock’s price is up 82% in the past 52 weeks. Barrat Developments Plc. has been rated an 9 out 10 in our Value/Growth rating and gets an A Grade rating on our Bullish Momentum meter. Year on year Revenues grew 12% from 2.32bn to 2.61bn and net income was also higher 11.28%. Earnings per share are up on a year on year basis by 9.16%.
From a technical standpoint, the stock has been on an extended uptrend during the previous months and we’re very bullish on this trend to continue. The recent break above the 360GBp resistance level signals good growth potential and as such we’d like to buy this stock at current levels. We’re targeting the 550GBp level for this stock and we’re intending to hold it for a medium to long term period, varying from 6-12 months.
As our stop level we’ll be using the 340GBp initially and then we will follow the bottom end of the regression channel drawn on the ShareScope chart above.
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