Kaufman & Broad: confident, SG raises target price.

(CercleFinance.com) - Société Générale (SG) does not share the market's reluctance towards Kaufman & Broad, whose interim accounts have been generally frowned recently.


Maintaining their buy rating on the stock, analysts highlight good visibility for the second half of 2017 and add that beyond this, and despite uncertainties surrounding tax schemes on rental property, a priori the government should not take the risk of "breaking" the dynamic nature of the sector. SG has raised its 12-month target price from 43 euros to 45.9 euros.

From a fundamental viewpoint, the property developer recorded a good first half, with housing reservations up by almost 17%, an order backlog of almost 1.5 billion euros (+21.9% ), providing 15.6 months of visibility, and improved program delivery time. As a result, management has slightly increased its growth forecast for 2017.


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