Analyst Jacob Armstrong of Stifel Nicolaus maintained a Buy rating on Lords Group Trading PLC (LORD – Research Report), retaining the price target of p50.00.
Jacob Armstrong has given his Buy rating due to a combination of factors that suggest a positive outlook for Lords Group Trading PLC. The recent sale and leaseback transaction of four freehold properties has provided the company with £13.1 million, which will be used to reduce borrowings and enhance liquidity. This strategic move is expected to support the company’s growth strategies, both organically and through selective acquisitions, despite the challenging macroeconomic environment.
Armstrong also notes that the transaction’s cash flow impact is anticipated to be neutral, as the additional rent expenses will be offset by reduced interest payments. The competitive sales process, conducted with the assistance of Knight Frank, and the fair and reasonable terms of the transaction, as assessed by independent directors, further reinforce the company’s strong governance practices. Overall, these factors contribute to a favorable strategic positioning for Lords Group Trading PLC, justifying the Buy rating.