Company Watch

Cairn Homes in ‘unique position’ in undersupplied Irish market, say analysts

Fears around inflation have depressed valuations and the housing group’s share price ‘is not adequately reflected in its current valuation’

Michael Stanley, chief executive of Cairn Homes: figures from Cairn show that new home commencements fell by 19.8 per cent in the period from March to July this year, on the back of rising build cost inflation. Picture: Fergal Phillips

Cairn Homes is “in a unique position in a fragmented and under-supplied Irish housing market given its scale and balance sheet strength”, according to Goodbody Stockbrokers.

The Dublin-listed builder was trading at €1.018 on Euronext Dublin on Friday evening. However, Goodbody has a price target of €1.65 for the company.

Shane Carberry, an investment banking analyst at Goodbody, said there are a number of factors why the shares are trading significantly below what he perceives ...