Market's view on LondonMetric
Published on April 2024
- There is a discussion about the automatic movement of a dividend from LXI to LMP by Trading212, questioning whether this is consistent across other platforms.
- Berenberg upgraded LondonMetric Property to ‘buy’ with a new price target of 229 pence.
- Concerns were raised about the acquisition cost of Alvarium Fund Managers by LMP, especially since it was associated with a scheme under investigation, posing a financial risk due to potential fines.
- The total cost of the LMP/LXI merger was noted to be £20.2 million.
- A stock watcher expressed dissatisfaction with the valuation of LMP shares, suggesting they are overvalued compared to peers and advising consideration of other investments in the sector.
- Positive views were shared about the future prospects of LMP, highlighting strong balance sheets and a favourable trading cycle.
- Discussions included speculations on the potential for LMP to increase its dividend post-merger due to cost savings and a broader portfolio.
- There is a mention of a beneficial reduction in management fees and economies of scale expected from the merger of LMP and LXI.
- A prediction was made that LMP’s strategic acquisitions and financial management could position it as a contender for the FTSE 100 listing.