Morgan Stanley has downgraded its rating for Hammerson PLC (LON:HMSO) to ‘equal-weight’ from ‘overweight’ after refreshing its forecasts in the wake of the real estate group’s recent interim results.
The US bank also cut is target price for the FTSE 250-listed stock back to 565p from 600p, with the shares currently changing hands at 512p each, down 3.2% on Wednesday’s close.
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In a note to clients, the Morgan Stanley analysts said: “The strategic review and buyback catalyst is done; and unless M&A returns to the space, investors face EPS, valuation and NAV drift.”
They added: “The buyback helps, but overall NAV and EPS trajectory is more important.”