Canaccord downgrades Berkeley Group after recent run higher

Analysts at Canaccord Genuity downgraded their recommendation for shares of Berkeley Group Holdings on the back of the recent run-up in the share price "against a less attractive risk:reward ratio".

The most important driver of the homebuilder's performance going forwards would be the outcome of the general election and its impact on political stability and policy, analyst Aynsley Lammin said in a research note sent to clients.

"A good outcome could result in improving confidence and a better London housing market. The Group is well positioned, in our view, to take advantage of how the macro and housing backdrop develops from here," he explained.

Despite that, said Lammin: "Over the long term, the Group remains an impressive deliverer of shareholder returns. In the near term, given the recent run in the share price and less compelling valuation, we downgrade to a HOLD (from Buy) against a less attractive risk:reward ratio."

Lammin did however hike his target price on the shares from 3,850.0p to 4,570.0p.