Barratt Developments: Breakout!
- Record profits of £910m expected in latest FY ’19
- Margin rose to 18.9%; 17,856 completion recorded
- Shares gapped up to new 2019 highs
One of the side effects of the Brexit referendum is that rates are capped. Why? because of huge economic uncertainties arising from the seismic event. The Bank of England, instead of hiking rates, is now contemplating a rate cut on a ‘No Deal’ Brexit. This is a drastic change in the monetary policy over the past year.
Low interest rates, a steady employment market, and the extension of ‘Help To Buy’ – all ensures that the property market outside London is holding up. This translates into record profits for the property developer Barratt Development.
Just recently, the £6.6 billion developer announced that it is expecting pre-tax of £910 million for the latest FY. Immediately, its share price shot up. After a few days of supply absorption at 620p, prices pushes higher this week to affirm its uptrend from 420p.
Technically, BDEV’s sharp upside breakout should push into the stock into 660p resistance – with a view of extending all the way to its 2017 highs. The steady uptrend from 440p earlier this year suggests lots of interest holding on here. A trading buy.
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