JPMorgan upgrades Segro after underperformance

JPMorgan Cazenove upgraded Segro to ‘overweight’ from ‘neutral’ on Wednesday and lifted the price target to 1,450p from 1,310p as it argued that recent underperformance was a buying opportunity.

JPM said property has borne the brunt of the shift in sentiment towards value thus far in 2022. This has driven the recent underperformance of Segro, which is down 10% year-to-date versus the sector down 3%.

"FY21 will be a record year for logistics with capital and rental growth in 2H outpacing any HY period over the last decade, and results should provide a strong catalyst to drive a re-rating through 2022," the bank said.

"We believe the opportunity ahead remains attractive and upgrade our NAV forecasts and now sit 4%/6%/7% ahead of compiled company consensus for ‘21/’22/’23."

JPM also placed the shares on ‘Positive Catalyst Watch’ into the FY21 results, which are due on 18 February.

At 0950 GMT, the shares were up 2.6% at 1,328p.