JPMorgan hikes price target on Workspace

JPMorgan Cazenove hiked its price target on office space provider Workspace on Wednesday to 820p from 700p.

The bank said potential for further lockdowns early next year cannot be ruled out, putting an overhang on what could have been a "more normal" letting period for the company. As a result, it is not surprised the shares have fallen 6% over the last week.

"However, a more constructive view, we think, can be formed looking beyond 1Q21, with the vaccine rollout and anticipated onset of the economic recovery (barring any further shocks)," JPM said. "We therefore expect WKP shares to be firmly higher on a 12 months view."

JPM said the valuation argument has closed since late September, with the shares rallying from a more than 50% discount and capital value of around £400 per square foot.

"But, despite this, we still see the current valuation as attractive should there be no further shocks to the economy," it said, adding that its base case is for a Brexit deal.

JPM maintained its ‘overweight’ rating on Workspace.