Berenberg 'encouraged' by Countryside Properties Covid-19 management

Analysts at Berenberg said on Friday that they were "encouraged" by Countryside Properties' handling of impacts stemming from the Covid-19 pandemic.

Berenberg stated that following a virtual fireside chat with Countryside chief executive Iain McPherson and other member's of the group's board, where they discussed topics ranging from the current short-term impact of Covid-19 on the company, progress with the phased return to work and the medium-term outlook, it was "upbeat" about the firm's growth prospects in the medium and long term.

However, the German bank said it was also aware of the "difficult few months" that lie ahead for the whole housebuilding industry in the UK.

Berenberg also highlighted how Countryside shares had fallen 50% by 20 March from a peak of 540.0p in late February 2020, before recovering some lost ground in recent weeks to now be down 30% year-to-date.

The analysts cautioned that the company's 2020 numbers would "clearly be weak", as they would be across the sector as a whole, so their focus was more on the shape for 2021 and thereafter.

"For the full year ending September 2021, the business is currently trading at 12.5x P/E and 1.8x P/TNAV. Once the current crisis has been navigated, we believe it has much more to offer," concluded Berenberg, which kept its 360p target price and 'buy' rating unchanged.