Qualitative fundamentals like growth, positive EPS and sales revisions argue for a recovery in prices.
The company characterizes by great growth and strong profitability. Upward revisions have been made on sales and earnings in a two-year horizon. Sales for the ongoing fiscal year should grow by 15.6%. EPS should reach GBp 248 for the current year compared to GBp 188 last year. Moreover, the company has attractive valuation level, with a P/E ratio at 9.59x 2015 estimates.
From a technical viewpoint, the equity moves in a trading range of GBp 2380/2580 for several months. The evolution of the stock brought prices close to the short term support at GBp 2380, which acts as a protection level from the downtrend. This area is expected to annihilate bearish possibilities and thus result in a bullish reversal. Technical indicators allow to aim bullish targets at GBp 2580 in the coming sessions.
In sum, the GBp 2379 offers an interesting purchase level on Berkeley Group Holdings. The bullish target will be set on the short-term resistance at GBp 2580. In order to protect the trade, a stop-loss will be triggered if prices fall under the short term support.
The Berkeley Group Holdings plc is a United Kingdom-based company engaged in building homes and neighborhoods across London, Birmingham, and the South of England. The Company and its subsidiaries are engaged in residential-led, mixed-use property development. The Company specializes in brownfield regeneration, reviving underused land to create sustainable and nature-rich places. The Company's portfolio of developments includes Sunningdale Park, Sunninghill Square, Bankside Gardens, Berkeley Place, Abbey Barn Park, Hareshill Crookham Village, Hartland Village, Knights Quarter, Hertford Locks, The Arches, The Eight Gardens, Farmstead at Tannersbrook, Hildenborough, Holborough Lakes, Foal Hurst Green, Hollyfields, Grand Union, Prince Of Wales Drive, Camden Goods Yard, South Quay Plaza, Chelsea Creek, Beaufort Park, Filmworks Ealing, Woodberry Down, Fulham Reach and others. The Companyâs brands include Berkeley, St Edward, St George, St James, St Joseph, and St William.