After Intu Properties PLC (LON:INTU) left full-year guidance unchanged in this morning’s trading update, Liberum Capital abandoned its bearish position.
The broker moved from ‘sell’ to ‘hold’, saying that although trading conditions remain soft, there had at least been no further deterioration.
READ: Intu Properties slumps as it warns on full year results amid UK retail challenges
“Occupancy levels remain unchanged and UK footfall trends have moved back into positive territory,” Liberum’s David Brockton noted.
The disposal of its 50% interest in joint venture Chapelfield is around 3% below the prior valuation, but provides some additional headroom to progress the group’s sizable development pipeline, Brockton observed.
According to Liberum, the shares have been weak due to concerns over the prospect of lower capital values, combined with above average financial gearing, and that risk still remains.
On the plus side, Liberum sees no further downside to its unchanged target price of 230p.
The shares currently trade at 223.6p, up 4.9%.