JPMorgan lifts Segro price target

JPMorgan Cazenove upped its price target on Segro on Thursday to 1,050p from 1,000p as it reassessed the outlook for the company following first-half results.

The bank said it was flexing its assumptions on four key variables - capital growth, rental growth, development activity and marginal debt costs - driving a 'Blue Sky' scenario that implies 42% upside potential.

"We contrast the relative valuation of Segro to the UK Super Six and consider the outlook for values and rental growth," it said.

“Utilising CoStar data we also look at underlying conditions in key Segro locations including Slough, The Midlands and Park Royal and show how listed real estate is becoming a low(er) risk play across equities again."

JPM maintained its ‘overweight’ rating on the shares.