While equities are far riskier that bricks and mortar they do provide a way for a small to large investment in the buoyant housing market with an easy short term exit, just 2% stamp duty and no legal or engineers fees.
Estate agents Sherry FitzGerald are expected to be major beneficiaries of the remarkably strength of the housing market, according to Goodbody Stockbrokers Peter Horgan. Yesterday he rated Sherry Fitz a ‘buy’ with a price target of €1.40, offering hope of a 16.6% upside on the stock.
Mr Horgan said following Sherry FitzGerald’s positive trading statement they have increased their forecasts.
“This increase is mainly due to the continued strength of the new homes market as signalled by the company in its recent trading statement. We have increased our forecast turnover for this division by 15% to €8.6m,” he said.
Mr Horgan said that after Sherry Fitz’s interims in September they expected the new homes market to weaken later in the year but they’ve continued to perform strongly.
Mr Horgan said Sherry Fitz’s share look cheap and for this reason they have placed a price target of €1.40 on the stock. The shares have traded at around €1.20 in recent days.