JP Morgan raises target price on Grainger
Analysts at JP Morgan upped their target price on residential property business Grainger on Friday from 320.0p to 350.0p, citing the group's recent full-year net asset value beat.
JP Morgan said it chose to made the move following Grainger's 2020 results, which it said proved the "resilience" of the portfolio by delivering "solid rental growth and valuation gains" during "an extremely disruptive period".
"We expect the premium to NAV to become imbedded, allowing the company access to accretive equity capital and leverage its proven operational platform," said JP Morgan, which also reiterated its 'overweight' rating on the stock.
The analysts also noted that given the size of the market, and the demonstrated platform capability, they felt there was "practically no limit" as far as future growth potential was concerned on a decade-plus view.
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