Grainger issued a positive trading update (11th October) highlighting that recurring PBT would exceed £50m for FY16e, above the upper end of market expectations. We factor this into our forecasts, but make a small 2% reduction to NNNAV to reflect the impact of marking-to-market fixed rate debt. With an increasing pipeline of PRS investment, we have a positive stance and believe that the current 20% discount is too conservative. We remain at BUY with a 320p 12m Target Price (1.1x NNNAV).
28 Oct 2016
N+1 Singer - Grainger - Positive FY update: recurring PBT +19%, NNNAV -2%
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N+1 Singer - Grainger - Positive FY update: recurring PBT +19%, NNNAV -2%
Grainger plc (GRI:LON) | 255 5.1 0.8% | Mkt Cap: 1,891m
- Published:
28 Oct 2016 -
Author:
Andrew Watson -
Pages:
5
Grainger issued a positive trading update (11th October) highlighting that recurring PBT would exceed £50m for FY16e, above the upper end of market expectations. We factor this into our forecasts, but make a small 2% reduction to NNNAV to reflect the impact of marking-to-market fixed rate debt. With an increasing pipeline of PRS investment, we have a positive stance and believe that the current 20% discount is too conservative. We remain at BUY with a 320p 12m Target Price (1.1x NNNAV).