Analyst Denese Newton of Stifel Nicolaus maintained a Buy rating on Unite Group plc (UTG – Research Report), with a price target of p975.00.
Denese Newton has given his Buy rating due to a combination of factors including Unite Group plc’s strong financial performance and positive market outlook. The company’s earnings per share (EPS) of 46.6p aligns with forecasts and reflects a 5% increase, driven by robust rental growth and high occupancy rates. Additionally, Unite’s share price stability and its outperformance compared to the UK EPRA Index, despite a challenging market, further support the Buy rating.
Moreover, Unite Group plc benefits from a well-hedged balance sheet and a solid development pipeline, ensuring future growth without capital constraints. The company’s ability to maintain rental growth guidance of 4%-5% for the upcoming academic year, alongside a high occupancy rate, indicates continued demand in the Purpose-Built Student Accommodation (PBSA) sector. The shares are trading at a discount to the net tangible assets (NTA) and below the long-term average price-to-earnings ratio, offering good value and justifying the Buy recommendation.
Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of UTG in relation to earlier this year.