JPMorgan upgrades Segro after underperformance
SEGRO
698.20p
12:40 24/12/24
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.
FTSE 100
8,136.99
12:59 24/12/24
FTSE 350
4,491.87
12:54 24/12/24
FTSE All-Share
4,449.61
13:14 24/12/24
Real Estate Investment Trusts
2,000.57
12:54 24/12/24
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.