On Wednesday, Jefferies updated its stance on LondonMetric Property PLC (LMP:LN) (OTC: LNSPF), increasing its price target to £2.50 from the previous £2.47. The firm sustained its Buy rating on the stock. The revision follows LondonMetric's recent acquisitions, including MUCK, CTPT, and LXI, which are expected to contribute to a rise in contracted rent to £361.7 million by the fiscal year 2026 (FY26).
The analyst highlighted that the company's dividend per share (DPS) for the fiscal year 2025 (FY25) at 12p surpassed the consensus estimates. This outperformance was supported by a 19-year credit and 79% mechanical growth. The revised price target is derived from a discounted cash flow (DCF) model and marks a modest 1% increase from the previous target.
The report also anticipates a potential uplift for the company, with an expected promotion to the FTSE-100 index on June 21, 2024. This inclusion could signify a recognition of the company's growth and performance metrics, making it one of the 100 most highly capitalized companies on the London Stock Exchange.
LondonMetric's strategy, focusing on portfolio optimization and long-term growth, has been recognized by Jefferies as a strong investment case. The company's recent moves and financial results seem to align with the firm's positive outlook for the stock. As of now, the market awaits to see if the expected promotion to the FTSE-100 will materialize in the upcoming month.
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