Having previously raised all the capital required to invest in its land bank, Cairn Homes has now passed a significant mile-stone; paying its first dividend, and, commencing a share buy-back. It is now expected that both of these features will repeat regularly, given the anticipated cash flows. Furthermore, the very long landbank implies a c5year land buying holiday further supporting cash flow. We raise our price target to €1.60 price target which implies 36% upside.
05 Nov 2019
Turning point reached
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Cairn Homes PLC (CRN:LON) | 137 -2.7 (-1.4%) | Mkt Cap: 886.3m
- Published:
05 Nov 2019 -
Author:
Andy Murphy -
Pages:
25
Having previously raised all the capital required to invest in its land bank, Cairn Homes has now passed a significant mile-stone; paying its first dividend, and, commencing a share buy-back. It is now expected that both of these features will repeat regularly, given the anticipated cash flows. Furthermore, the very long landbank implies a c5year land buying holiday further supporting cash flow. We raise our price target to €1.60 price target which implies 36% upside.