1042 GMT - Bellway is the top sector pick for Davy Research as the housebuilder's stock could rise by more than 40% and reach Davy's 3,743 pence target price, analyst Colin Sheridan says in a note. The London-listed company has become laser-focused on asset turnover and capital returns as the underwhelming recovery in the U.K.'s new-homes market continues, Sheridan says. Despite a material outperformance versus the sector in the last 12 to 18 months, its stock continues to be valued more cheaply than the average competitors', at around 11%, which is a wider discount to its historical 9% discount, Sheridan says. "We now see the potential for the recovery to re-accelerate in 2026 and for us to become more constructive on U.K. homebuilding," he says. Shares are up 0.9% at 2,646 pence.(anthony.orunagoriainoff@dowjones.com)

(END) Dow Jones Newswires

November 04, 2025 05:42 ET (10:42 GMT)

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