In a report released today, John Cahill from Stifel Nicolaus maintained a Buy rating on LondonMetric Property (LMP – Research Report), with a price target of p200.00.
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John Cahill has given his Buy rating due to a combination of factors that highlight LondonMetric Property’s strategic growth and financial prospects. The company is actively expanding through mergers and acquisitions, as evidenced by its recent decision to acquire Highcroft Investments in an all-share deal. This acquisition is expected to enhance LondonMetric’s growth potential by adding a portfolio focused on logistics, retail warehousing, and office assets.
Furthermore, LondonMetric’s shares are currently trading at an 11% discount to their net tangible assets, which, despite being the highest in the coverage universe, is justified by the company’s strong income growth and earnings potential. The company has a track record of successful acquisitions, which have been earnings accretive, and it has efficiently managed non-core assets post-acquisition. With a forecasted compound annual growth rate in earnings per share of nearly 10% and a dividend yield of 6.6%, the financial outlook supports the Buy rating.
According to TipRanks, Cahill is a 4-star analyst with an average return of 7.7% and a 70.09% success rate.
In another report released on March 21, Jefferies also maintained a Buy rating on the stock with a p224.00 price target.