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BKG: New CFO Appointment Will Support Future Earnings Resilience And Returns

BKG: Earnings Outlook Will Balance Modest Margins Against Executive Leadership Change

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BKG
AnalystConsensusTarget
Not Invested
Published 07 Dec 2024

Update shared on 14 Dec 2025

Fair value Decreased 0.99%
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Analysts have slightly lowered their price target for Berkeley Group Holdings to £43.04 from £43.47, citing modestly higher expected revenue growth, a lower anticipated future price-to-earnings multiple, and a marginally softer profit margin outlook.

What's in the News

  • Neil Eady has been appointed Chief Financial Officer of Berkeley Group Holdings, effective Monday, bringing more than two decades of experience in the property and development sector to the role (company announcement).
  • Eady steps up from his current position as Divisional Finance Director at Berkeley Capital, after joining the group in 2013 and serving in several Finance Director roles across the business (company announcement).
  • He was part of the team that launched the St William joint venture in 2014 and previously spent 10 years at Land Securities, including time as Corporate Finance Director, strengthening Berkeley's senior finance leadership bench (company announcement).

Valuation Changes

  • The fair value estimate has edged down slightly to £43.04 from £43.47 per share.
  • The discount rate has decreased marginally to 9.23 percent from 9.27 percent, reflecting a slightly lower assumed risk profile.
  • Revenue growth has shifted from a modest contraction of 0.32 percent to an expected expansion of approximately 1.52 percent, indicating a more optimistic top line outlook.
  • The net profit margin has eased slightly to about 14.05 percent from 14.15 percent, pointing to a marginally softer profitability assumption.
  • The future P/E has been reduced meaningfully to roughly 12.63x from 14.65x, implying a lower valuation multiple applied to expected earnings.

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