Jefferies initiates Harworth Group stock with buy rating on land value

Published 23/06/2025, 11:28
Jefferies initiates Harworth Group stock with buy rating on land value

Investing.com - Jefferies initiated coverage on Harworth Group PLC (LON:HWG) with a buy rating and a price target of 210 pence on Monday.

The research firm cited Harworth’s expertise in master planning and its ability to create long-term value by acquiring and assembling large, complex sites, often former industrial brownfield land including UK Coal business properties.

Harworth currently maintains a 12-15 year pipeline of residential land plots, which it acquires for approximately £7,000 per non-consented land plot and sells at an average of £50,000 per serviced land plot, according to Jefferies.

The company has 13,600 residential plots in the planning system and aims to achieve annual sales of approximately 2,000 plots, which Jefferies expects will provide significant trading profit for the group.

Jefferies noted that Harworth trades at approximately 23% discount to its last Net Disposal Value of 222 pence, and believes the discount should narrow as the company grows its investment portfolio from about £300 million to £900 million by 2029, ahead of comparable industrial REITs.

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