Hammerson PLC (LSE:HMSO) has been downgraded by analysts at Peel Hunt, who argue the recent disposals excitement at the commercial property group has run its course.
That had seen the sale of interests in Value Retail for an enterprise value of £1.5 billion, with cash proceeds of £600 million.
Peel Hunt says the deal transforms Hammerson’s balance sheet and provides the opportunity to once again invest in its portfolio, but the near-term excitement has arguably played out it adds.
EPS forecasts reduce by 8.0% to 2.0p (from 2.1p) while an increase in the dividend payout to 80-85% of adjusted earnings (from 60-70%) provides a good underpin to distributions, including a 6% increase in the broker’s 2026E forecast.
'Hold' from 'Add' is now the recommendation, while the target price remains unchanged at 32p.