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

Key Points

• Derwent London shares reached a new 52-week high of GBX 2,154 and last traded at GBX 2,136, up from the previous close of GBX 2,104.
• Analyst sentiment remains mixed, with four Buy, three Hold and two Sell ratings. The consensus rating is Hold, with an average price target of GBX 1,956.50—below the current share price.
• Derwent London owns 66 predominantly central London office properties valued at £4.9 billion, while its shares trade at a P/E ratio of 14.78 and remain above both their 50-day and 200-day moving averages.

Derwent London Plc (LON:DLN - Get Free Report) shares hit a new 52-week high during 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 traded. The stock had previously closed at GBX 2,104.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on DLN. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a GBX 1,850 price target on shares of Derwent London in a report on Wednesday, May 13th. UBS Group reiterated a "sell" rating and issued a GBX 1,650 price objective on shares of Derwent London in a research report on Monday, May 11th. Finally, Jefferies Financial Group reissued 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 issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, Derwent London presently has a consensus rating of "Hold" and an average target price of GBX 1,956.50.

Derwent London Stock Up 0.8%

The company has a market cap of £2.36 billion, a price-to-earnings ratio of 14.78, a price-to-earnings-growth ratio of 23.10 and a beta of 1.19. The stock has a 50-day simple moving average of GBX 1,926.35 and a 200-day simple moving average of GBX 1,810.20. The company has a current ratio of 0.59, a quick ratio of 0.38 and a debt-to-equity ratio of 43.37.

Derwent London announced that its board has authorized a stock repurchase program on Tuesday, May 12th that authorizes the company to repurchase 0 shares. This repurchase authorization authorizes the real estate investment trust to reacquire shares of its stock through open market purchases. Shares repurchase programs are usually a sign that the company's leadership 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.

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