Stifel slashes target price for Unite as occupancy concerns persist

13th Mar 2026 11:26

(Sharecast News) - Stifel has slashed its target price for student housing group Unite, saying that the macro developments holding back occupancy levels are unlikely to ease anytime soon.

The broker has cut its target for the share price from 600p to 485p and retained a 'hold' recommendation.

The neutral rating comes despite the stock's significant underperformance over the past six months - falling 30% compared with the EPRA UK Index up 6% - leaving it at a 50% discount to net tangible assets following a series of downgrade events.

"A number of self-help measures are being employed: a £100m share buyback, canceling of off-campus projects, and an accelerated disposal programme. These are positive, in our view, but solving the occupancy issue is key," Stifel said in a research note.

The bigger problems, according to the broker, are declining numbers of overseas students, a greater proportion of UK students choosing to live at home, and universities negotiating reduced term nominations agreements - all of which "may take time to solve".

"Short of using pricing as a lever (which could be equally damaging), we think the occupancy problem could persist until market supply adjusts and Unite's own portfolio is optimally positioned," Stifel said.

Unite shares were up 1.5% at 473.46p by 1204 GMT.