Citi analysts downgraded Great Portland Estates (LSE:GPOR) to a 'sell' rating, stating that the central London property investment and development company will experience deeper stock weaknesses “before long-term value arises”.
“We estimate that office values fall further and that the stock could overshoot to the downside as negative values materialise, and potentially discount opportunistic equity,” said Citi.
In the long term, Citi expects Great Portland to take advantage of its deleveraged balance sheet positioning “ and operational platform and cyclical expertise” to take advantage of the bottom of the value downcycle.
Analysts are bullish in the long term, with opportunistic future acquisitions and outsized returns tipped for the next upcycle.
In short, hold off on Great Portland stock until the next upcycle comes into view, reckons Citi.