Derwent London (LON:DLN) Sets New 12-Month High – Still a Buy?

Derwent London Plc (LON:DLN) hit a new 52-week high during mid-day trading on Monday . The company traded as high as GBX 2,154 and last traded at GBX 2,136, with a volume of 10855 shares changing hands. The stock had previously closed at GBX 2,104.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on DLN. UBS Group reaffirmed a “sell” rating and set a GBX 1,650 target price on shares of Derwent London in a report on Monday, May 11th. Deutsche Bank Aktiengesellschaft restated a “hold” rating and issued a GBX 1,850 target price on shares of Derwent London in a report on Wednesday, May 13th. Finally, Jefferies Financial Group reaffirmed an “underperform” rating and set a GBX 1,492 target price on shares of Derwent London in a research note on Wednesday, July 1st. Four research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, Derwent London currently has a consensus rating of “Hold” and a consensus target price of GBX 1,956.50.

Derwent London Price Performance

The company has a market capitalization of £2.36 billion, a PE ratio of 14.78, a P/E/G ratio of 23.10 and a beta of 1.19. The company has a debt-to-equity ratio of 43.37, a quick ratio of 0.38 and a current ratio of 0.59. The stock has a 50 day moving average price of GBX 1,926.35 and a two-hundred day moving average price of GBX 1,810.20.

Derwent London declared that its board has approved a share repurchase program on Tuesday, May 12th that permits the company to repurchase 0 outstanding shares. This repurchase authorization permits the real estate investment trust to buy shares of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s board believes its stock is undervalued.

Derwent London Company Profile

Derwent London plc owns 66 buildings in a commercial real estate portfolio predominantly in central London valued at £4.9 billion as at 31 December 2023, making it the largest London office-focused real estate investment trust (REIT). Our experienced team has a long track record of creating value throughout the property cycle by regenerating our buildings via development or refurbishment, effective asset management and capital recycling. We typically acquire central London properties off-market with low capital values and modest rents in improving locations, most of which are either in the West End or the Tech Belt.