Berkeley Group PLC should see the benefit of a stronger London housing market in its interim results next week says JP Morgan, which has upgraded its profit estimate to £280mln.
Data recently points to strong new build demand, rents and home buying interest says JPM, which expects Berkeley to upgrade its guidance with its interims.
Berkeley Group shares are down 8% year to date, significantly underperforming the sector adds the US bank, putting them on an average valuation for the sector compared to a historical premium of 50%.
JPM says that is attractive, even though it has tweaked its share price target down to 5,500p from 5,848p.
Read More: Berkeley Group PLC interims next week to benefit from recovering