When Bovis Homes was floated in 1997, many doubted its ability to sustain its operating margin, but the group's acquisition of strategic land has kicked such fears into touch and left scope for further progress, notes Charles Stanley. It is well placed to benefit from the improved housing outlook and it has an earnings profile that warrants a premium rating to the sector, adds the broker, which values the shares (325p) a buy.
Over the past few months, London International Group has been dominated by its December profits warning, since when the shares have had a particularly bumpy ride, says Salomon Smith Barney, which rates the stock as neutral, high-risk, with a target price of 180p. They believe any final price could be nearer 200p or higher. The downside in the short term is seen as limited to about 10 per cent, while the potential upside is considerably higher.Reuse content