Barclays gives Segro a double upgrade

Barclays has upgraded its rating on industrial real estate group Segro by two notches from 'underweight' to 'overweight' as part of its review of the European warehouse sector.

"The warehouse market continues to remain structurally supported," the bank said in a research note on Wednesday.

"While company valuations are richer than other sub-sectors, we expect good earnings growth and asset values are more realistically set. Leverage is low and companies are issuing equity to grow."

Segro's shares, which have gained 13% over the past 12 months and now stand at 869.40p, have fallen sharply since the 1,400p level it reached in early 2022.

But Barclays sees upside, hiking its target price from 775p to 1,000p.