Homebuilder Cairn Homes and Glenveagh Properties shares fall as broker cuts targets

Homebuilder Cairn Homes and Glenveagh Properties shares fall as broker cuts targets

Shares in housebuilders Cairn Homes and Glenveagh Properties fell as Davy cut its price targets for the firms, citing a “significant” slowdown in asking prices outside of Dublin.

Cairn shares fell 1.5% to €1.12, to bring its losses in the past year to almost 22%, while Glenveagh shed 3.3% to 73c, to bring its losses to 25% over the same period.

The share prices of the two stockmarket-listed builders have been under pressure for some time as investors turn cool on Irish property firms and banks ahead of Brexit.

Davy cut its forecast for home price inflation to 1% from 3% by the end of 2019. On Cairn, it cut its outlook for revenues and operating profit and moved its price target to €1.50.

The broker said Cairn was “well on course to hit our forecast for at least 35c per share in shareholder returns in the three-year period FY 2019-2021”. It stuck to its out-perform rating for the shares.

On Glenveagh, it pared its revenue outlook and operating profit and cut its price target to €1.40. “The substantial upside to intrinsic value further demonstrates to us that the market is continuing to price in a material fall in house prices in Ireland in the short term, something we see as unlikely outside a hard Brexit scenario. We reiterate our outperform rating,” it said.

More on this topic

Landlord reps slam proposals to improve energy ratings in rented propertyLandlord reps slam proposals to improve energy ratings in rented property

60% of Dublin's social housing tenants behind on rent; FG Cllr says tenants not paying their way should be evicted60% of Dublin's social housing tenants behind on rent; FG Cllr says tenants not paying their way should be evicted

Fianna Fáil TD would back motion of no-confidence in GovernmentFianna Fáil TD would back motion of no-confidence in Government

First-time buyers leaving capital for Dublin's commuter beltFirst-time buyers leaving capital for Dublin's commuter belt

More in this Section

One in four planing Christmas shopping trip outside state - AAOne in four planing Christmas shopping trip outside state - AA

Tech firm Horizon8 picks Cork as Europe HQTech firm Horizon8 picks Cork as Europe HQ

Abbey eyes more Irish work as profits fallAbbey eyes more Irish work as profits fall

Providence shares see bounce on Tony O’Reilly exitProvidence shares see bounce on Tony O’Reilly exit


Lifestyle

Overshadowed by its giant neighbours it may be, but the smallest of the main Blasket islands, Beginish, is no less impressive in its own right.The Islands of Ireland: The miracle of Beginish

‘The days of our years are threescore years and ten — Psalm 90How to tell an animal’s age in a heartbeat

We often hear how nature will do well, even come back from the brink of extinction, if given a chance and some human help.Birds of prey on the rise

In our country we still have places that bear no evidence of disturbance by man, that are in their pristine state and rich with all the elements that feed the spirit and deliver us into the world beyond the skin of the time and circumstances we live in.Unique ambience of Dursey Island under threat

More From The Irish Examiner