(Sharecast News) - JPMorgan Cazenove upgraded its rating on shares of student accommodation provider Unite to 'overweight' from 'neutral' on Wednesday, highlighting four reasons to buy the stock.
JPM said that having fallen 42% year to date, the premium has now moved out of Unite shares and noted a number of reasons to buy the stock "looking through Covid-19 lockdown disruption".
The bank said the shares are as cheap as at any time since 2013. In addition, it said universities are very early on in the disruption cycle and there are no imminent structural impacts from online learning.
JPM also pointed to the fact that a rise in the population of 18 year olds is expected through to 2030 after several years of decline. Finally, it said purpose-built student accommodation "is a rare winner from changes to UK immigration".
The bank cut its price target on the stock to 900p from 950p.
At 1215 BST, the shares were up 7% at 820.00p.
Unite (UTG)11 Apr 2024 15:09