Kepler cuts British Land stock rating, lowers price target to GBP4.05

Published 30/05/2025, 07:58
Kepler cuts British Land stock rating, lowers price target to GBP4.05

On Friday, Kepler Cheuvreux revised its outlook on British Land Company Plc (LON:BLND:LN) (OTC:BTLCY), downgrading the stock from Buy to Hold and adjusting the price target from GBP 4.30 to GBP 4.05. The adjustment follows the company’s fiscal year 2025 results, which, while slightly above management’s bottom-line guidance, presented a mixed financial picture with notable variations across different lines of the profit and loss statement.

The research firm’s analysis pointed out that the second half of the financial year’s rental income fell short of expectations by 2.4% or GBP 6 million, as per the mid-point of the guidance provided in November for FY 2025. However, British Land’s net interest expense performed better than anticipated, coming in 9.5% or GBP 6 million lower than expected.

Amid these results, British Land’s management set medium-term earnings per share (EPS) growth guidance that did not meet consensus estimates. This more cautious outlook has influenced Kepler Cheuvreux’s decision to downgrade the rating and reduce the price target.

Despite positive headlines in the market, British Land has experienced challenges in leasing its new office spaces in London, which has contributed to the firm’s decision to adjust its expectations for the company’s stock. The revised price target represents a 6% decrease from the previous target of 430 pence, signaling a more conservative stance on the part of Kepler Cheuvreux analysts towards the real estate company’s near-term prospects.

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