Big Yellow Group Shares (BYG) Reinstated with Bullish Rating

Big Yellow Group shares (LON: BYG) climbed 0.19% to 1,034 GBp during morning trading after Barclays reinstated coverage on the UK self-storage operator with an Overweight rating and a price target of 1,200 GBp.

The analyst cited expectations of recovering occupancy rates driven by an improving economic backdrop and strengthening consumer sentiment across Britain.

The Barclays reinstatement marks the latest in a series of positive analyst actions that have bolstered sentiment around the FTSE 250 constituent in recent weeks. The 1,200 GBp target implies upside of approximately 16% from current levels, suggesting the market has yet to fully price in the anticipated operational recovery.

Big Yellow has emerged as a focal point for analysts reassessing the UK real estate investment trust sector following a turbulent period marked by rising interest rates and weaker consumer confidence. The self-storage specialist operates 107 stores across the UK, providing both business and personal storage solutions in a market that has historically demonstrated resilience during economic uncertainty.

Jefferies Financial Group upgraded the stock from Hold to Buy on 26 January 2026, lifting its price target to 1,225 GBp from 1,200 GBp. The upgrade reflected a more constructive view on Big Yellow's defensive characteristics and operational strength within the broader UK property sector. Meanwhile, Berenberg Bank reaffirmed its Buy rating on 20 January with a significantly higher price target of 1,383 GBp, underscoring confidence in the company's strategic positioning and growth trajectory.

Not all analyst views have been uniformly bullish. Goldman Sachs reinstated coverage in mid-December 2025 with a Neutral rating and 1,120 GBp price target, pointing to expectations of muted near-term operational metrics. The Wall Street bank projected like-for-like revenue growth would slow to just 2% in the first half of fiscal year 2025/26 amid softer occupancy levels. However, Goldman acknowledged the company's solid rental growth and substantial development pipeline as potential drivers of future earnings expansion.

The stock experienced volatility in early December following the collapse of takeover discussions with private equity giant Blackstone. Big Yellow announced it had terminated talks after Blackstone updated its position on a potential offer, concluding there was no basis to continue negotiations. Shares fell 5.3% on the news, erasing gains that had accumulated during the speculation-driven period.

Despite that setback, analyst consensus remains constructive. The average 12-month price target across covering analysts stands at 1,300.60 GBp, implying potential upside of approximately 25.66% from current trading levels. The consensus rating is Buy, reflecting broad-based optimism about Big Yellow's ability to capitalize on structural demand for self-storage space.

Price Targets

Markets appear to be weighing the company's near-term operational headwinds against its longer-term strategic opportunities. The Barclays reinstatement suggests growing confidence that occupancy pressures may be easing as the UK economy stabilizes and consumer activity normalizes.