Cairn Homes to complete 397 homes this year - Davy

Stockbroker said Cairn is well placed to take advantage of Ireland’s recovery

Cairn’s Parkside development on the Malahide Road in Dublin.

Cairn’s Parkside development on the Malahide Road in Dublin.

 

Cairn Homes is likely to complete building on 97 homes in the first half of this year and a further 300 in the second half, according to Davy Stockbrokers.

In a note to investors in advance of the company’s upcoming interim results, Davy suggested that Cairn is well placed to “take advantage of the sustained recovery” in Ireland’s housing market.

Davy analyst Colin Sheridan wrote to clients that the average selling price of a Cairn home in the first half of this year is likely to be below €300,000, however he expects this to “rise significantly” in the second half of the year.

All of that said, Mr Sheridan expects a “negligible operating profit for the period.”

“The focus will remain on the outlook as the company begins to see a large number of sites bringing completions in the coming quarters,” he added.

The investor note points to a number of expected completions by the end of the year including the Marianella development in Rathgar, Dublin 6, and Glenheron in Greystones, Co Wicklow.

News around mortgage approvals and house price inflation has “been positive for the stock,” Mr Sheridan concluded.