Bellway (LON:BWY) Stock Gets Price Target Cut from Berenberg Bank

Key Points

• Berenberg cut Bellway’s price target from GBX 2,550 to GBX 2,450 but maintained a “buy” rating, implying 21.17% upside from the previous close.
• Bellway’s analyst consensus remains positive, with six buy ratings, three holds, a “Moderate Buy” average rating and a consensus target price of GBX 2,527.89.
• Operational growth and a planned £150 million buyback support the stock, but analysts warn that affordability pressures, higher costs and weaker pricing could weigh on FY27 margins and housing volumes.

Bellway (LON:BWY - Get Free Report) had its price objective lowered by research analysts at Berenberg Bank from GBX 2,550 to GBX 2,450 in a research note issued to investors on Wednesday, Digital Look reports. The firm currently has a "buy" rating on the stock. Berenberg Bank's price target points to a potential upside of 21.17% from the company's previous close.

BWY has been the topic of several other research reports. Citigroup upped their price objective on shares of Bellway from GBX 2,300 to GBX 2,500 and gave the company a "buy" rating in a report on Wednesday, August 12th. Jefferies Financial Group reiterated a "buy" rating and set a GBX 2,380 price objective on shares of Bellway in a research note on Monday, September 28th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a GBX 2,917 target price on shares of Bellway in a research note on Wednesday, August 12th. Finally, JPMorgan Chase & Co. cut Bellway to an "overweight" rating and reduced their price target for the stock from GBX 3,480 to GBX 2,410 in a report on Tuesday, June 16th. Six equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of GBX 2,527.89.

Bellway Trading Up 3.4%

Shares of LON:BWY opened at GBX 2,022 on Wednesday. The business's fifty day simple moving average is GBX 2,094.10 and its 200-day simple moving average is GBX 1,978.10. Bellway has a 12-month low of GBX 1,715 and a 12-month high of GBX 2,890. The company has a current ratio of 5.26, a quick ratio of 0.50 and a debt-to-equity ratio of 5.39. The company has a market capitalization of £2.25 billion, a PE ratio of 15.36, a P/E/G ratio of 3.40 and a beta of 1.37.

Bellway (LON:BWY - Get Free Report) last announced its earnings results on Tuesday, October 13th. The company reported GBX 187.80 EPS for the quarter. Bellway had a net margin of 5.46% and a return on equity of 4.43%. As a group, equities research analysts predict that Bellway will post 159.07 earnings per share for the current fiscal year.

Bellway announced that its board has approved a stock repurchase plan on Tuesday, September 1st that authorizes the company to repurchase 0 outstanding shares. This repurchase authorization authorizes the company to reacquire shares of its stock through open market purchases. Share repurchase plans are generally a sign that the company's board believes its shares are undervalued.

Bellway News Summary

Here are the key news stories impacting Bellway this week:

• Positive Sentiment: FY26 revenue increased 13.6% to £3.16 billion, while total housing completions rose 10.8%, demonstrating continued volume growth for the housebuilder. Bellway FY26 Revenue Rises 13.6% to £3.16 Billion as Housebuilder Announces £150 Million Share Buyback
• Positive Sentiment: Bellway announced a £150 million share buyback, which could support earnings per share and signal management confidence in the company’s balance sheet and long-term prospects. Bellway FY26 Pretax Profit Rises; Total Housing Completions Up 10.8%
• Neutral Sentiment: Bellway reported FY26 pretax profit growth and quarterly earnings of 187.80 pence per share, although the overall result was characterized as mixed because profit fell short of market expectations. Bellway Issues Earnings Results
• Negative Sentiment: Management warned that FY27 margins will face pressure from buyer affordability constraints, higher costs and a less favorable pricing environment. It also guided to lower FY27 home volumes and margins, raising concerns about near-term earnings growth. UK's Bellway Flags Margin Pressures in 2027
• Negative Sentiment: Analysts noted that the buyback may mask worsening underlying margins, while the profit miss and softer FY27 outlook could limit the benefit of Bellway’s revenue and completion growth. Bellway’s Bumper Buyback Masks Worsening Margins

Bellway Company Profile

Bellway p.l.c., together with its subsidiaries, engages in the home building business in the United Kingdom. The company builds and sells homes ranging from one-bedroom apartments to six-bedroom family homes, as well as provides homes to housing associations for social housing. It offers homes under Bellway, Ashberry, and Bellway London brands. The company was founded in 1946 and is headquartered in Newcastle upon Tyne, the United Kingdom.

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