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Hammerson share price spiked after earnings: still a buy?

By:
on Nov 8, 2022
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  • Hammerson's stock price has been in a strong bullish trend.
  • It has jumped to the highest level since September 30th.
  • Hammerson’s occupancy rate has jumped to over 92%.

Hammerson (LON: HMSO) share price surged on Tuesday after the company published strong financial results. It jumped to a high of 24.86p, which was the highest point since August 22nd. At its highest level, this price was about 47% above the lowest level on September 30. 

Property market stable

Hammerson is a leading real estate company with a presence in the UK, Ireland, and France. Some of its top destinations are Brent Cross in London, Dundrum Town Centre in Dublin, Italie Deux in Paris, and Centrale & Whitgift in Croydon among others.

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Like other commercial real estate companies, Hammerson had a difficult performance during the pandemic. At the time, as we wrote here, the firm’s revenue plunged as most parts of the country shut down.

Recently, however, the company has been in a strong performance in the past few months. In 2021, the company welcomed over 181 million visitors in its stores. The trend continued this year.

On Tuesday, Hammerson published strong results. In a statement, the firm said that it expects that its adjusted earnings to be not less than £100 million. Its gross rental income has jumped by 11% while its net rental income continued rising. 

In the UK and Ireland, footfall rose to about 90% of 2019 levels while in France, it has risen to 95%. Meanwhile, UK, France, and Ireland sales jumped to 4%, 3%, and 2%, respectively. Group rent collections rose to 93%.

Therefore, Hammerson share price surged as investors react to these strong earnings. They also said that the company will continue disposing of non-core assets in the coming months. 

In the first half of the year, Hammerson said that its adjusted earnings rose by 154% to £51 million. Its IFRS profit rose to £50 million while its group portfolio value jumped to £5.3 billion. The company also reduced its total debt to £1.7 billion.

Hammerson share price forecast

real

The four-hour chart shows that the HMSO stock price has been in a strong bullish trend in the past few days. As the shares rose, they managed to move above the important resistance level at 22.35p, which was the highest point on September 13. It has also moved above the 25-day and 50-day moving averages.

The Stochastic Oscillator has dropped below the overbought level. Therefore, the shares will likely continue rising as bulls target the next key resistance level at 26p. A drop below the support at 21.50p will invalidate the bullish view.