Kaufman & Broad: SG optimistic before interim results.
(CercleFinance.com) - Société Générale (SG) this morning confirms its buy rating on the shares of real estate developer Kaufman & Broad, which will publish its interim results after the market closes on 11 July.
Despite the "difficult comparison basis" that should characterise the period, the momentum should remain dynamic. Analysts are still maintaining their target price at 43 euros.
SG points out that in the first half of 2016, the group benefited from an exceptional transaction concerning offices in Paris, boosting the revenues of its tertiary division by 65 million euros. This will not happen again in H1 2017 and should result in sales of the group's the Commercial Property division falling by 42%, analysts estimate.
However, in the group's main business - residential SG's report says, “we forecast 15% revenue growth for 1H17,” in addition to an operating margin of 7.2%, which breaks down as 6.7% in 1Q17 and 7.7% in 2Q17e.” Pre-sales are expected up 19% at 4,200 units, it adds.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Despite the "difficult comparison basis" that should characterise the period, the momentum should remain dynamic. Analysts are still maintaining their target price at 43 euros.
SG points out that in the first half of 2016, the group benefited from an exceptional transaction concerning offices in Paris, boosting the revenues of its tertiary division by 65 million euros. This will not happen again in H1 2017 and should result in sales of the group's the Commercial Property division falling by 42%, analysts estimate.
However, in the group's main business - residential SG's report says, “we forecast 15% revenue growth for 1H17,” in addition to an operating margin of 7.2%, which breaks down as 6.7% in 1Q17 and 7.7% in 2Q17e.” Pre-sales are expected up 19% at 4,200 units, it adds.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.