ASX real estate stock Cedar Woods Properties Ltd (ASX: CWP) climbed 2.14% higher on Tuesday.
It is an Australian property development company. Its principal interests are in urban land subdivisions and built-form development for residential, commercial, and retail purposes.
Despite having a slow start to 2026, the share price has risen more than 45% over the last 12 months.
For context, the S&P/ASX 200 Real Estate (ASX: XRE) index is down 4.6% over that same span.
This ASX real estate stock was making headlines yesterday after posting record half-year results.
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What did the company report?
Cedar Woods reported a record NPAT of $39.6 million. This was 163% higher than the previous corresponding period.
Revenue for the half rose 40% to $274.8 million.
Additionally, management upgraded its FY 2026 guidance, expecting net profit after tax growth of 30% to 35%.
It also declared a fully franked interim dividend of 14 cents per share, up 40% on last year's interim dividend of 10 cents per share.
Investors were seemingly pleased with these results, as the share price jumped 12% in early morning trade, before retreating in the afternoon.
Where to next for this real estate stock?
The long term outlook continues to look strong for this ASX real estate stock.
Following yesterday's result, the team at Bell Potter released updated guidance on the company.
It said the reported EPS of 47.4c was significantly above Bell Potter's estimate (+30.7%) and Visible Alpha consensus (+60.9%).
The broker said the 1H26 beat was driven by higher settlement volume and further expansion in gross development margin (31.3% vs 28.4% FY25 and 26.3% pcp) reflecting ongoing strength across key markets.
It also highlighted that demand remains robust, despite a less supportive interest rate backdrop, with management emphasising the supply/demand imbalance far outweighs the deterrent effect of higher rates.
We adjust our FY26-FY28 FFO / share estimates by +1% to +10% to reflect: (1) impact of half year actuals; (2) upgraded earnings guidance; and (3) increased gross development margin expansion across a spectrum of CWP projects.
Target price increase
Based on this guidance, Bell Potter has upgraded its target price for this ASX real estate stock to $10.20 (previously $10.00).
The broker maintained its buy recommendation.
From yesterday's closing price of $8.13, this indicates an upside of approximately 25.5%.
We see an improvement in the quality of earnings, as well as further upside to BPe, and with a 4.8% fully franked dividend yield see a TER of +30% on our revised $10.20 TP.
