Morgan Stanley analyst Ana Escalante maintained a Buy rating on Unite Group plc today and set a price target of p1,000.00.
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Ana Escalante’s rating is based on the strong fundamentals of the UK student accommodation market and the increasing attractiveness of the UK as a destination for international students. With other English-speaking countries imposing more restrictions, the UK is expected to see a rise in international student numbers, which should lead to robust rental growth in the coming years. This potential for sustained rental growth is not fully appreciated by the market, which anticipates a slowdown to long-term average growth rates.
Despite a slower leasing cycle for 2025/26, attributed to changes in student behavior, the outlook remains positive with an increase in undergraduate and international student acceptances. Unite Group’s potential acquisition of Empiric is expected to enhance its exposure to international students and prestigious universities, offering efficiency gains and improved capital access. Additionally, the stock is attractively valued, with its NAV at decade lows and a valuation gap that has narrowed significantly, making it appear inexpensive compared to historical levels.
In another report released on August 15, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a p809.00 price target.