Should I buy CLS Holdings stock in 2025? Expert Advice for Investors in Ireland

What is CLS Holdings?

How much is the CLS Holdings stock?

The price of CLS Holdings stock is slightly lower this week. As of 30 May 2025, the share is trading at 62.40 pence, showing a 1.42% drop in the past 24 hours and a weekly change of -0.16%. CLS Holdings has a market capitalisation of £248.82 million, with a three-month average daily volume of 1.29 million shares. The forecasted P/E ratio stands at 6.64, while the dividend yield is an attractive 10.83% and the stock's beta is 1.19, indicating above average volatility. Investors in Ireland should note this mix of strong yield and volatility when considering their next steps.

Our full analysis of the CLS Holdings stock

After a comprehensive assessment of CLS Holdings plc’s recent financial disclosures and a detailed review of its stock performance over the last three years, our proprietary multi-factor analysis—incorporating financial metrics, technical indicators, market sentiment, and sector benchmarking—highlights a unique confluence of undervaluation and fundamental resilience. With CLS Holdings currently trading well below both its historical averages and consensus target, the question arises: does the convergence of robust assets, proactive management, and favourable sector tailwinds position CLS Holdings as a strategic re-entry point into UK-listed commercial property for 2025?

Recent Performance and Market Context

CLS Holdings (LSE: CLI) has witnessed pronounced market dislocation over the past year, currently trading at 62.40 pence (as of 30 May 2025), marking a 29% decline year-on-year and a 22.99% drop over six months. While the stock is undeniably under pressure, several encouraging developments have emerged:

• Notable Asset Sales: The recent £101.1 million disposal of Spring Mews and progress on a wider £270 million asset recycling programme reinforce management’s proactive stance on portfolio optimisation. These actions target debt reduction and cash generation, precisely as market participants demand discipline.
• Operational Resilience: Despite headwinds, CLS delivered a 2.15% top line rise in 2024—annual revenues reached £151.9 million—with net rental income up 3.8% on a like-for-like basis. Importantly, 112 new leases were signed, driving £16.6 million in annual rental commitments.
• Sector Cycle: According to company management, the UK commercial property market appears close to a cyclical bottom, suggesting that downside risk is moderating while upside convexity is building for patient investors.

In the broader sector context, CLS Holdings operates amidst lingering valuation resets in UK and European office assets, but there is evidence of renewed institutional interest and policy support as 2025 unfolds—a constructive backdrop for tactical allocation.

Technical Analysis

Technicals confirm CLS Holdings is navigating a potentially attractive inflection zone:

• Momentum Indicators: The share price currently trades slightly below the 50-day moving average (-4.7%) and significantly under the 200-day (-22.38%). Historically, such a gap has coincided with periods of accumulation and subsequent mean reversion.
• Support and Resistance: The well-established support at 58.00 pence has withstood retests, highlighting institutional buying interest at these levels. Medium-term resistance is identified at 82.00 pence; a breakout above this could catalyse a new bullish phase.
• Volume Dynamics: Although 30 May’s trading was subdued (29,382 shares), the 65-day average volume stands at a robust 1.29 million, with a positive 22-day on-balance-volume (+40.43), indicative of underlying accumulation despite headline price weakness.
• Trend Structure: The prevailing descending channel, paired with stabilising volume and resilient support, often precedes trend reversals, particularly as sentiment shifts on improving fundamentals.

Current technicals thus underpin a view of a stock potentially bottoming, with considerable upside should mean reversion and re-rating take hold.

Fundamental Analysis

A deep dive into CLS Holdings’ core fundamentals reveals compelling characteristics:

• Attractive Valuation: The forward P/E stands at just 6.64, well beneath sector norms and suggesting significant embedded value, especially when paired with a forecast dividend yield of 10.83%.
• Cash Generation and Cost Discipline: Management’s asset rotation, debt refinancing at competitive rates (5.13% on £154.5m), and a consistently strong rent collection rate (99%) demonstrate operational discipline.
• Strategic Expansion and Resilience: The company owns a diversified, pan-European office portfolio exceeding 600,000 m², with over 744 tenants, including blue-chip names. Despite a 5.8% decline in portfolio valuation through 2024, the impact was mitigated by dynamic leasing and asset repositioning.
• ESG Initiatives: CLS has committed to carbon neutrality by 2030, allocating £65 million in decarbonisation CAPEX. This aligns with growing investor demand for green property and offers long-term reputational and asset-value upside.
• Income Security: Over 54% of rental income is indexed to inflation—a key hedge in higher-rate environments.

Despite temporary pressures (notably a 15% decrease in EPRA NTA and reduced dividend), management’s transparent strategy and proven adaptability make the current multiples appear more reflective of cyclical pessimism than structural weakness.

Volume and Liquidity

Liquidity and volume trends further bolster CLS Holdings’ investment case:

• Consistently Active Market: The 65-day average daily volume of 1.29 million shares represents healthy institutional interest and underpins tight spreads—paramount for investors seeking timely execution.
• Favourable Float Dynamics: With 398.11 million shares outstanding and a diversified register, the free float supports dynamic price discovery and limits the risk of illiquidity-led distortion.
• Market Confidence: Steady turnover, alongside a consensus median price target of 114 pence (implying nearly 80% upside), illustrates that conviction is building within the analyst and investor community.

Catalysts and Positive Outlook

Several forward-looking events and structural drivers could underpin a significant re-rating in 2025:

• Completion of Asset Realisations: £78.6 million in targeted sales remain, freeing further capital and likely de-risking the balance sheet.
• Upcoming Earnings Events: H1 2025 results (due 13 August 2025) and the Q3 trading update (1 November 2025) present opportunities for operational improvements or strategic announcements to catalyse upside.
• Macroeconomic Tailwinds: Easing UK inflation and expectations for eventual rate cuts could reinvigorate transaction activity and reduce financing costs across the property sector.
• ESG Premium: CLS’s investment in decarbonisation and high energy efficiency standards positions its portfolio to attract premium occupancy in an increasingly sustainability-driven leasing environment.
• Market Sentiment: With many investors positioned defensively towards commercial property, any sign of cyclical trough could fuel a rotation into discounted, income-generating assets.

These catalysts, when combined, present a powerful case for a medium-term strategic revaluation of the equity.

Investment Strategies

The current market context allows for flexible entry strategies tailored to individual risk appetites:

• Short-term Positioning: Technical indicators suggest a potential rebound from oversold conditions, especially as the price nears long-term support and volume remains constructive. Tactical traders may view this as an ideal entry point for a technical bounce.
• Medium-term Strategy: With earnings catalysts on the horizon and further balance sheet strengthening anticipated from ongoing asset rotations, medium-term investors may find advantage in positioning ahead of earnings revisions or sector sentiment shifts.
• Long-term Allocation: For those seeking reliable yield and exposure to resilient European office assets, CLS’s inflation-linked income, strong tenant base, and ambitious ESG agenda present a compelling blend of defensive and growth attributes. The current discount to book and consensus targets supports a long-duration thesis.

Across all time horizons, the risk/reward ratio is skewed favourably given current valuation dislocation and cyclical positioning.

Is it the Right Time to Buy CLS Holdings?

Synthesising the above, several key strengths emerge:

• Material Undervaluation: The stock trades at deep discounts to NAV and consensus targets, with a forecast yield of over 10%.
• Operational and Strategic Resilience: Robust leasing, proactive asset management, and strong cash generation highlight an ability to manage through sector volatility.
• Clear Catalysts: Near-term events, from further sales to earnings updates, offer multiple triggers for re-rating.
• Structural Positioning: Exposure to inflation-linked income, ESG leadership, and an institutional-grade tenant roster ensure strategic relevance.
• Momentum Building: Technical signals and volume measures reveal the potential start of a new bullish phase.

The balance of evidence suggests that CLS Holdings plc represents an excellent opportunity for investors seeking value, income, and the capacity for significant capital appreciation as property markets stabilise. With thoughtful risk management and careful portfolio integration, this stock appears well equipped to benefit those prepared to look beyond near-term uncertainty and harness cyclical recovery. For discerning investors in the IE market, CLS Holdings deserves renewed consideration as a high-conviction play on European commercial property’s next upswing.

How to buy CLS Holdings stock in Ireland?

Buying shares of CLS Holdings is straightforward and secure when using a regulated online broker, making it accessible for investors in Ireland. You have two main routes: you can purchase the shares outright (spot buying) and become a direct shareholder, or you can trade Contracts for Difference (CFDs), which allow you to speculate on price movements with leverage, without owning the actual shares. Both methods are available via leading online platforms, offering robust protections for retail clients. Not sure where to start? We outline reputable broker options further down the page to help you find the right fit.

Spot Buying

Spot buying simply means purchasing actual CLS Holdings plc shares listed on the London Stock Exchange. When you buy shares for cash, you become a part-owner, usually entitled to dividends and voting rights. Irish investors pay typical online broker commissions, often between €3 and €10 per trade.

Example

The current CLS Holdings share price is about 62.40 pence (roughly €0.73 per share as of May 2025). With a €1,000 budget, after a €5 brokerage fee, you can buy around 1,357 shares (€1,000 - €5 = €995; €995 / €0.73 ≈ 1,363; rounding for fees and price moves to 1,357).
✔️ Gain scenario:
If the share price rises by 10%, your holding is now worth €1,100.
Result: +€100 gross gain, a 10% return on your investment.

Trading via CFD

CFD trading on CLS Holdings shares lets you speculate on the price, upward or downward, without owning them. CFDs are leveraged products – you deposit a portion of the trade’s full value (margin), and your gains or losses are magnified. Instead of a commission, you pay the spread (the difference between buy/sell prices) and, if you hold overnight, financing fees.

Example

You open a CFD position on CLS Holdings with €1,000 at 5x leverage, giving you the market exposure of €5,000.
✔️ Gain scenario:
If the share price increases by 8%, your position gains 8% × 5 = 40%.
Result: +€400 gain, on a €1,000 deposit (excluding fees).

Final Advice

Before you invest, it’s wise to compare brokers’ fees, trading platforms, regulations, and investor protections. Both buying shares outright and trading via CFDs have their advantages – spot buying suits long-term investors who want dividends and ownership, while CFDs appeal to active traders who seek flexibility and leverage. Your choice should reflect your goals and risk appetite. To get started, consult our broker comparison further down the page and make an informed, confident decision.

Our 7 tips for buying CLS Holdings stock

The latest news about CLS Holdings

CLS Holdings completed the major £101.1 million sale of Spring Mews in its ongoing strategic asset disposal program. This significant transaction, finalized in the past week, is part of a larger £270 million divestment plan designed to strengthen the balance sheet. By unlocking capital via non-core asset sales and focusing resources on higher-yielding opportunities, CLS is demonstrating solid operational discipline. Such disposals, especially in prime UK and EU markets, are closely monitored by Irish institutional investors seeking resilient, liquid assets and diversification within commercial real estate, with positive knock-on effects for cross-border investment flows and property valuations relevant to the Irish market.

The recent refinancing of nine loans totaling £154.5 million at an average fixed rate of 5.13% improves debt visibility and reduces refinancing risk. With debt markets in flux, this proactive refinancing effort signals robust treasury management and an ability to secure financing under competitive terms. Stability in funding costs is critical for listed property firms with substantial UK and European portfolios, including exposure to Ireland-linked tenants and financial partners. This move helps mitigate risks from interest rate volatility, a key concern for Irish real estate professionals and analysts focusing on leverage and credit conditions across the sector.

CLS Holdings has achieved a 99% rent collection rate and signed 112 new leases in 2024, ensuring resilient income streams. Net rental income rose 3.8% on a like-for-like basis over the year, underpinning confidence in occupational demand for modern office stock, even as hybrid work trends persist. High occupancy and near-perfect rent collection are particularly relevant benchmarks for Irish commercial property owners and asset managers, who track these metrics for peer comparison and as indicators of market health, particularly given ongoing structural shifts in the office and mixed-use space.

Analyst consensus points to a median price target upside of 80% and a double-digit forecast dividend yield, supporting investment appeal. Despite recent share price underperformance, the median consensus from three independent analysts calls for a robust target of 114p versus the 62.40p current price, offering material upside. A forecast 10.83% dividend yield further enhances the stock's attractiveness for income-focused portfolios, including those of Irish pensions, life insurers, and private wealth clients. The presence of a solid analyst "Buy/Outperform/Hold" balance reinforces stable market sentiment, underscoring the visibility and liquidity that Irish institutional investors require.

Management confirms that the UK commercial property cycle may be at or near its trough, with ongoing sustainability investments and strong inflation-linkage in lease revenues. CLS’s assertion that market conditions are stabilizing, together with a forward-looking refurbishment and carbon neutrality program (including £65 million earmarked for ESG upgrades), aligns with regional mandates on sustainable investing present in Ireland. Additionally, the company’s 54.4% inflation-linked leasing enhances inflation hedging—an increasingly valued attribute for Irish investors managing real returns amid a persistently volatile energy and cost environment.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.