Kepler starts Derwent London stock coverage, cautious on long-term headwinds

EditorEmilio Ghigini
Published 08/01/2025, 06:56 pm

On Wednesday, Kepler Cheuvreux initiated coverage on Derwent London Plc (LON:DLN:LN) (OTC: DWVYF) stock, setting a "Hold" rating and a price target of GBP21.70. The firm's analysts pointed out that the company, which has historically shown strong performance, is currently exhibiting weaker financial results due to various factors. They noted that some of these factors are likely to continue, which could hinder a quick recovery for the stock.

The analysts elaborated on their position, stating that the challenges facing Derwent London are not just cyclical but may persist over time. This assessment led them to adopt a cautious stance despite the stock's valuation multiples appearing attractive.

Derwent London, known for its portfolio of properties across London, has faced market conditions that have impacted its financial outcomes. The analysts at Kepler Cheuvreux believe that these conditions may affect the company's ability to bounce back swiftly.

The initiation of coverage by Kepler Cheuvreux comes at a time when investors are closely monitoring the real estate sector, especially in prominent markets like London. The analysts' hold rating suggests a neutral outlook for Derwent London's stock, implying that they do not expect significant movement in either direction in the near term.

The price target of GBP21.70 set by Kepler Cheuvreux reflects their current valuation of Derwent London shares. This target provides a reference for investors as they consider the stock's potential for price changes.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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