LSL Property stock initiated with Buy rating at Jefferies on UK housing recovery

Published 17/09/2025, 09:10
LSL Property stock initiated with Buy rating at Jefferies on UK housing recovery

Investing.com - LSL Property Services (LSE:LSL) received a Buy rating initiation from Jefferies on Wednesday, with a price target of GBP3.81.

The property services company has transformed to a capital-light model over the past two years, achieving a return on capital employed exceeding 30%, according to Jefferies. The firm highlights LSL’s significant operational leverage to a recovery in UK housing transactions.

Jefferies forecasts LSL to achieve more than 15% growth in operating profit in 2025, with double-digit growth continuing beyond 2027. The firm calculates that a 10% increase in mortgage approvals above their current 5% growth assumption could provide approximately 15% upside to fiscal year 2026 EBIT estimates.

The research note indicates LSL trades at 9 times 2026 price-to-earnings, with Jefferies suggesting this valuation is underpinned by the sum of parts of the underlying business.

Jefferies also anticipates a strategy refresh from LSL management next year, potentially including greater focus on self-help initiatives to drive profitability and additional sources of structural growth across individual divisions.

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