Yahoo Finance What Do Analysts Think About LondonMetric Property Plc's (LON:LMP) Future?
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The most recent earnings release LondonMetric Property Plc's (LON:LMP) announced in March 2019 revealed that the business endured a immense headwind with earnings deteriorating by -36%. Investors may find it useful to understand how market analysts perceive LondonMetric Property's earnings growth outlook over the next couple of years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
See our latest analysis for LondonMetric Property
Market analysts' consensus outlook for the upcoming year seems pessimistic, with earnings declining by a double-digit -13%. Over the medium term, earnings are predicted to continue to be below today's level, with a decline of -18% in 2021, eventually reaching UK£98m in 2022.
Even though it is helpful to understand the growth each year relative to today’s value, it may be more beneficial to analyze the rate at which the business is rising or falling on average every year. The benefit of this method is that it ignores near term flucuations and accounts for the overarching direction of LondonMetric Property's earnings trajectory over time, be more volatile. To compute this rate, I've appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is -5.5%. This means that, we can assume LondonMetric Property will chip away at a rate of -5.5% every year for the next few years.
Next Steps:
For LondonMetric Property, I've compiled three relevant aspects you should further examine:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is LMP worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether LMP is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of LMP? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
