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The Markets
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The Markets
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Proactive UK has moved.
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Real Estate

JP Morgan raises Segro target price and backs shares to recover from recent sell-off

JP Morgan has lifted its target price for SEGRO PLC (LSE:SGRO), the FTSE 100 warehouse and logistics property group, from 885p to 915p while reiterating an overweight recommendation, arguing the shares remain one of the best-placed names in European property despite recent market turbulence.

The new target implies upside of around 15% from current levels, with the bank citing a more optimistic blue-sky scenario that could deliver 35%.

Analyst Neil Green updated his forecasts following constructive full-year results, though he noted those figures predated the recent US-Iran conflict.

Segro's shares have pulled back around 5% alongside broader listed real estate, as uncertainty over inflation and central bank policy has been repriced by markets.

The stock had previously recovered 39% from its recent lows before the latest retreat.

JP Morgan said there were a number of visible drivers for earnings growth at the company, and that underlying market trends in the warehouse and logistics sector appeared to have turned a corner.

Segro develops and manages warehouses, data centres and urban logistics properties across the UK and Europe, with its portfolio concentrated around major cities and transport hubs.

In late morning trading, SEGRO shares were flat at 797.4p.

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