Cedar Woods Properties' (ASX:CWP) positive momentum was driven by good volumes and price growth as new stages are released into a chronically undersupplied housing market, said Euroz Hartleys in a Wednesday note.

The company on Wednesday reported presales of more than AU$763 million for the fiscal first quarter, up from presales of more than AU$560 million last year and said it expects a 15% growth in net profit after tax in fiscal 2026, up from its earlier guidance of 10%, leading to a "record" profit and increased dividend distribution.

The research firm said it expects fiscal 2026 net profit after tax of AU$55.5 million, up from the previous estimate of AU$53 million, while the fiscal 2027 forecast is now at AU$61.5 million, up from AU$57.3 million.

Euroz Hartleys continues to believe that there are good reasons to suggest an uptick in gross profit margin, around both demand and supply fundamentals, and product mix.

Euroz Hartleys maintained a buy rating on Cedar Woods Properties and boosted its price target to AU$9.89 from AU$8.99.

The property developer's shares rose past 1% in recent Thursday trade.