Berenberg nudges up target price on Shaftesbury Capital

Analysts at Berenberg hiked their target price on real estate investment trust Shaftesbury Capital from 160.0p to 174.0p on Friday, citing a broad-based recovery.

Berenberg said Shaftesbury Capital’s interim results on 31 July suggested early signs of growth across most of its sub-sectors and locations within its portfolio, with only residential reporting a decline in values of 1%.

The German bank stated this reflected Shaftesbury's "unique Central London offering", as well as increasing demand for not only its retail and hospitality space but also for its office product.

"Shaftesbury Capital was one of our top-picks for the start of the year, and while the shares are up 6% year-to-date, outperforming the wider UK REIT sector, they still trade at a relatively wide 24% to the reported net tangible assets," said Berenberg, which reiterated its 'buy' rating on the stock.

"We have revised our forecasts, edging back our earnings per share estimates to 4.0p (was 4.2p) for FY24E, 4.5p (was 4.7p) for FY25E and 4.7p (was 4.9p) for FY26E. This has a knock-on impact on our dividend estimates given that we broadly assume a 90% payout ratio. Our NTA estimates are, however, unchanged."

Reporting by Iain Gilbert at Sharecast.com