MJ Gleeson (LON:GLE) Earns Underperform Rating from Royal Bank Of Canada

Key Points

• Royal Bank of Canada reiterated an “underperform” rating on MJ Gleeson and set a GBX 200 price target, implying approximately 20% downside from the current share price.
• Analyst sentiment is mixed: Berenberg cut its target to GBX 310 while maintaining a “buy” rating, leaving MJ Gleeson with a consensus “hold” rating and GBX 255 target.
• Shares opened at GBX 250, while the company faces weak housing demand, declining profits, a recent full-year loss and a reduced dividend; management does not expect a meaningful near-term market improvement.

MJ Gleeson (LON:GLE - Get Free Report)'s stock had its "underperform" rating restated by analysts at Royal Bank Of Canada in a research note issued to investors on Tuesday, Digital Look reports. They presently have a GBX 200 price objective on the stock. Royal Bank Of Canada's price target would suggest a potential downside of 20.00% from the company's current price.

Separately, Berenberg Bank dropped their price target on shares of MJ Gleeson from GBX 345 to GBX 310 and set a "buy" rating for the company in a research report on Thursday, June 11th. One research analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat, MJ Gleeson currently has a consensus rating of "Hold" and a consensus target price of GBX 255.

MJ Gleeson Trading Up 0.4%

Shares of GLE stock opened at GBX 250 on Tuesday. The firm's fifty day simple moving average is GBX 267.37 and its 200 day simple moving average is GBX 263.12. MJ Gleeson has a 1 year low of GBX 214.09 and a 1 year high of GBX 435. The company has a current ratio of 3.87, a quick ratio of 0.89 and a debt-to-equity ratio of 7.86. The firm has a market capitalization of £145.84 million, a P/E ratio of 10.19 and a beta of 0.62.

MJ Gleeson (LON:GLE - Get Free Report) last announced its quarterly earnings data on Tuesday, September 15th. The company reported GBX 14.09 EPS for the quarter. MJ Gleeson had a net margin of 3.76% and a return on equity of 4.67%. As a group, sell-side analysts predict that MJ Gleeson will post 35.1412429 EPS for the current year.

Trending Headlines about MJ Gleeson

Here are the key news stories impacting MJ Gleeson this week:

• Positive Sentiment: FY2026 revenue increased 12.1%, indicating that MJ Gleeson continued to grow activity despite challenging market conditions. MJ Gleeson FY26 Revenue Rises 12.1% as Adjusted Profit Declines
• Neutral Sentiment: Project Transform is reshaping the business as management adjusts operations to a subdued housing market. The initiative could improve efficiency over time, but its near-term financial benefits remain uncertain. MJ Gleeson tightens dividend as Project Transform reshapes business amid subdued housing market
• Negative Sentiment: Adjusted profit declined and MJ Gleeson swung to a full-year loss of approximately £2.7 million, reflecting weak sales conditions and pressure on margins. MJ Gleeson slips to loss amid weak sales environment
• Negative Sentiment: The company reduced its dividend, making the results less attractive to income-focused investors and signaling caution about cash generation and the outlook. MJ Gleeson swings to full-year loss, cuts dividend
• Negative Sentiment: Management is not expecting a meaningful improvement in the housing market, suggesting that weak demand and difficult selling conditions may persist and continue to constrain earnings. Housebuilder MJ Gleeson not expecting any improvement in housing market

About MJ Gleeson

MJ Gleeson plc comprises two divisions: Gleeson Homes and Gleeson Land. Gleeson Homes, under the banner of "Building Homes. Changing Lives" builds high-quality affordable homes across the Midlands and North of England. To meet customer demand, and without compromising affordability, the range of homes available extends from one-bed apartments to five-bedroom houses. With a two-bedroom home available from £100,000, a key objective is to ensure that on all of our developments, a meaningful proportion of homes are affordable to a couple earning the National Living Wage.

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