Supermarket Income REIT (LON:SUPR) Sets New 1-Year High - Time to Buy?

Key Points

• Supermarket Income REIT hit a new 52-week high, trading as high as GBX 89.40, after a period of very heavy volume.
• The company raised capital to fund an earnings-accretive grocery acquisition pipeline, including a nine-asset pipeline, and also announced the purchase of three UK supermarkets for £118 million.
• Analysts remain generally constructive, with Jefferies reiterating a buy and the stock holding an average Moderate Buy rating and target price of about GBX 89.25, though the fundraising could dilute existing shareholders in the near term.

Supermarket Income REIT (LON:SUPR - Get Free Report)'s share price hit a new 52-week high on Thursday . The company traded as high as GBX 89.40 and last traded at GBX 86.83, with a volume of 191079938 shares traded. The stock had previously closed at GBX 88.90.

Key Stories Impacting Supermarket Income REIT

Here are the key news stories impacting Supermarket Income REIT this week:

• Positive Sentiment: The company said the new capital will support earnings-accretive grocery acquisitions, including a nine-asset pipeline, which could expand the portfolio and boost long-term rental income. Article Title
• Positive Sentiment: Supermarket Income REIT also announced the acquisition of three UK supermarkets for £118 million, reinforcing its strategy of buying income-generating grocery assets in a defensive sector. Article Title
• Neutral Sentiment: Multiple reports confirmed the company launched a rights issue/retail offer to raise the funds, but these are duplicative disclosures of the same financing plan rather than separate new catalysts. Article Title
• Negative Sentiment: The fundraising itself may pressure the stock in the near term because issuing new shares can dilute existing shareholders, even if the move is intended to fund accretive growth.

Analysts Set New Price Targets

A number of equities analysts have issued reports on SUPR shares. Jefferies Financial Group reiterated a "buy" rating and set a GBX 89 price target on shares of Supermarket Income REIT in a research report on Thursday, July 2nd. The Goldman Sachs Group cut their price objective on Supermarket Income REIT from GBX 93 to GBX 88 and set a "neutral" rating for the company in a research report on Monday, March 30th. Three investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, Supermarket Income REIT currently has an average rating of "Moderate Buy" and an average target price of GBX 89.25.

Supermarket Income REIT Stock Performance

The stock has a market cap of £1.06 billion, a price-to-earnings ratio of 17.37, a P/E/G ratio of 15.09 and a beta of 0.59. The firm's 50-day moving average is GBX 84.46 and its two-hundred day moving average is GBX 83.88. The company has a current ratio of 1.73, a quick ratio of 1.95 and a debt-to-equity ratio of 80.37.

About Supermarket Income REIT

Supermarket Income REIT plc (LSE: SUPR, JSE: SRI), a FTSE 250 company, is the only LSE listed company dedicated to investing in grocery properties which are an essential part of national food infrastructure. The Company focuses on grocery stores which are predominantly omnichannel, fulfilling online and in-person sales and are let to leading supermarket operators in the UK and Europe. The Company's properties earn long-dated, secure, inflation-linked, growing income. SUPR targets a progressive dividend and the potential for long term capital growth.

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