Will a potential AGM shareholder revolt interrupt Berkeley Group’s rise this Wednesday?
Even when compared to its sector peers there has been little disruption to Berkeley Group’s rise in 2017. After opening at £28.22 the stock has just kept climbing, its only real dip coming around the pre- and post-UK election chaos that came to define the end of May and much of June. Berkeley Group (LON:BKGH) now sits at an all time high of £37.45, marking a near 33% increase since the start of the year.
So, what exactly has got investors willing to grab a brick and pitch in with Berkeley’s build? Well, in March the company stated that the London property market was ‘stabilising’ after the shock of the Brexit vote, despite it seeing a 16% fall in underlying reservations.
In June the firm wasn’t quite so upbeat, warning of a period of ‘prolonged uncertainty’ in the property market due to Brexit (alongside other factors like the increase in stamp duty and wider global concerns). However, Berkeley still managed to bust out some big figures alongside its dour comments. For the year to 30th April the company posted a whopping 53% surge in pre-tax profit to £812.4 million, leaving it on track to meet its oft-touted £3 billion in pre-tax profit over the 5 years to 2021.
In terms of Wednesday’s update, then, investors will want more of the same. However, the headlines are likely to be dominated not by good-cheer but disgust, as shareholders balk at the £92 million in long-term share bonuses dished out to executives.
Berkeley Group Holdings PLC has a consensus rating of ‘Buy’ with an average target price of £35.34.
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