Bellway: Cyclical Recovery Nears as Receding U.K. Mortgage Rates Lift Homebuyer Confidence

Bellway’s February 2024 trading update evidences an incremental improvement in U.K. housing market conditions and points to an inflection point in the housing cycle that is drawing closer. Bellway delivered 4,092 homes and revenue of GBP 1.25 billion in the first half of fiscal 2024, with the no-moat homebuilder remaining on track to deliver 7,500 home completions in fiscal 2024, according broadly with our full-year forecasts. With our long-term expectations unchanged, we make no change to our GBX 3,750 fair value estimate, viewing Bellway’s shares as attractive at their current price. We anticipate further details when Bellway reports its first-half fiscal 2024 result in full on March 26.