Segro Share Discussion Threads

[philanderer] 14/2/2024 14:15

Shore Capital rates Segro a ‘buy’ at current levels


Property investment and development group Segro (SGRO) is regaining momentum, but recent share price weakness offers a chance to invest, says Shore Capital.

Analyst Andrew Saunders retained his ‘buy’ recommendation on the warehouse and industrial property investor, which dropped 3% to 812p on Tuesday.

‘The shares are up by 23% from the low point in October 2023 but some recent price weakness in February offers investors another attractive opportunity to buy,’ said Saunders.

He said the industrial and logistics market had been subdued in previous years but is ‘nonetheless regaining momentum, particularly in the UK’.

‘Furthermore, recent transactions are increasingly taking place either at or above previous reported valuations, thus helping validate asset valuations, and recent data from the MSCI UK Monthly index also highlights a more resilient performance in capital growth from industrials,’ Saunders said.

Although the broader UK real estate investment trust (Reit) sector is embracing consolidation, Saunders believes Segro ‘already enjoys considerable scale and leading positions in many of its markets’.

‘It also has a strong equity growth story offering a forecast 8% compound annual growth rate in earnings per share growth over the next three years and expected growing momentum in asset value recovery,’ he said.


citywire.co.uk

[philanderer] 22/1/2024 10:10

(Sharecast News) - Citi upgraded Segro on Monday to 'buy' from 'neutral', saying it estimates that as rates decline, the risk to its previous estimates of deep recession rent declines reverses and it now expects growth.

"Combined with lower debt and bond yield forecasts, our estimates of a circa 20% decline in asset value reverses to circa 15% growth, significantly increasing our forward net asset value estimates," the bank said.

"Downside risk in the real estate sector has eased but has not been eliminated so our upgrade of Segro is a cautions way to increase investment risk in the real estate sector, while offering downside protection should conditions deteriorate back towards our deeper recession view."

At 0935 GMT, the shares were up 2.3% at 847.40p.

Sharecast.com

[philanderer] 18/1/2024 11:43

Bank of America raises Segro price target to 930 (870) pence - 'neutral'

[philanderer] 20/12/2023 09:56

Stifel raises Segro price target to 875 (775) pence - 'hold'

[boozey] 15/12/2023 10:35

eigthwonder - totally agree with your analysis there - I was thinking exactly the same thing.

[eigthwonder] 15/12/2023 08:38

BTW the sector relative bottomed just about when the sell notes appeared Oct/Nov, which shows just how much credence you should give these things

[eigthwonder] 15/12/2023 08:36

Goldman probably had a bit order to fill and thought they would get the shares by spooking the market. The rules at IBs mean you can raise a price target but if that figure is still (say) 15% or more below the current price it is still deemed a sell. Calls to action - buy or sell - need daylight between the target and current market price. It’s also why you get the more invidious practice of raising a target price AFTER the share price has risen to ensure you retain the buy stance

[philanderer] 12/12/2023 15:11

red, none at all :-)


JPMorgan adds Segro to 'analyst focus list', raises price target to 985 (885) pence - 'overweight'

[red army] 05/12/2023 11:21

Goldman Sachs raises Segro price target to 680 (580) pence - 'sell'

That doesnt make sense????

[philanderer] 05/12/2023 10:32

Goldman Sachs raises Segro price target to 680 (580) pence - 'sell'

[philanderer] 30/11/2023 11:48

Berenberg starts Segro with 'hold' - price target 863 pence

[philanderer] 14/11/2023 15:13

Whoosh on that soft inflation data. Rates peaked ?

[philanderer] 03/11/2023 13:42

JPMorgan cuts Segro price target to 885 (1,000) pence - 'overweight'

[philanderer] 02/11/2023 00:12

Detail:

Shares in Segro were hit on Wednesday after Goldman Sachs downgraded its rating on the UK real estate investment trust from 'neutral' to 'sell', citing "balance sheet constraints".

Segro has delivered average adjusted earnings-per-share growth of around 7% through its last net investment cycle between 2014 and 2022, but Goldman sees this as unsustainable going forward.

The bank said this growth will "slow meaningfully" in the near term as the company reduces investment activity to lower the net debt-to-EBITDA ratio to around 9x, down from a peak of 12.2x at the half-year stage in 2023. Rising finance costs will also hamper growth, it said.

For 2022 to 2025, Goldman expects compound annual growth of just 2.7% in adjusted EPS "due to a balance sheet that is now stretched on net debt-to-EBITDA metrics".

"With an implied yield of 5.2%, there are less levered, less-expensive growth stocks among a global peer set and Segro’s shares have outperformed our UK and European coverage c.7% year-to-date," Goldman said.

"On a lowered [return on capital employed] and slightly higher [weighted average cost of capital], we reduce our target price 13% to 580p, which implies 16% downside, and we therefore downgrade the shares from 'neutral' to 'sell'."


Sharecast.com

[dov] 01/11/2023 09:19

Ouch GS definitely not a fan They downgraded not long ago

[ghhghh] 01/11/2023 08:58

GS downgraded to Sell, target price 580p. Out of kilter with other brokers eg UBS, Jefferies and Shore Cap all Buys

Barclays are UW with 775p PT

[dov] 01/11/2023 08:06

Any news causing big fall this morning Broker downgrade?

[philanderer] 18/10/2023 23:23

Happy to hold.

-------------

Warehouse developer Segro reported strong demand for its giant sheds and industrial properties.

It has projects that could bring in an extra £84million under construction or due to start shortly.

But it added that investment activity remains ‘subdued’;, particularly in the UK. Shares fell 2.3 per cent, or 17p, to 718p.


Mail market report

[nexusltd] 18/10/2023 10:38

9 mnth KPI’s
- Sold £251mn, above book @ 3.2% NIY
- Building @ 7.3% NIY, c. £78.4mn rent secured from new build.
- LTV 34%, Cost of Debt 3.0%, 89% capped. 7.2 yrs average maturity.

[boozey] 18/10/2023 06:15

Solid Trading Statement.

[nexusltd] 16/10/2023 11:21

Q3 Trading Update Wednesday 18th.

[philanderer] 26/9/2023 18:23

(Sharecast News) - UK real estate investment trusts (REITs) offer a "compelling" investment opportunity, according to analyst at Morgan Stanley, who said that the sector could soon see a recovery as challenging macro conditions slowly begin to ease.

"As many as seven of the 11 stocks we rate 'overweight' [in the sector] after UK-listed," Morgan Stanley said. These are: British Land, Derwent London, Great Portland Estates, Hammerson, Safestore, Segro and Unite.

[philanderer] 25/9/2023 21:08

RBC cuts Segro price target to 925 (975) pence - 'outperform'

[boozey] 22/9/2023 11:31

Dividend pay day today. Hopefully now on the slow path to recovery.

[boozey] 11/9/2023 12:30

Thanks Philanderer. Amazing how brokers spout their recommendations heavily blended with their agenda and then reverse their views as soon as the tide turns against them. And how much are they paid to do this? :)