Bond.az - UBS initiated coverage of Unite Group Plc (LON:UTG) with a "buy" rating and a 12-month price target of 585p on Friday, arguing the UK's largest purpose-built student accommodation operator is mispricing a cyclical demand slowdown as structural decline.
Shares traded at 511p as of May 28, implying about 15% upside. The stock has traded between 449p and 862p over the past 52 weeks.
"The market is extrapolating recent weakness in bookings – partly driven by lower international postgraduate flows – into perpetuity, missing key nuances and creating an attractive entry point," UBS analysts said.
UBS forecasts fiscal 2026 underlying EPS of 41.75p, slightly below consensus of 41.9p, widening to 43.36p in fiscal 2028, about 3.3% above consensus.
On demand, undergraduate applications rose 2.3% in 2026, with applications to high-tariff universities accelerating to 5.9%.
