logo-loader
viewHammerson

Hammerson weak as Stifel cuts stance to ‘sell’ from ‘hold’ after reducing estimates, target price due to planned disposals

The US broker's analysts pointed out that Hammerson has identified £900mln of potential asset sales, of which they assume £500mln will be completed during full-year 2019

Shopping centre
Stifel reduced its target price for the FTSE 250-listed firm to 300p from 340p, with the shares currently trading at 335.20p

Stifel has downgraded its rating for Hammerson PLC (LON:HMSO) to ‘sell’ from ‘hold’ after cutting its estimates and target price as a result of the planned disposals by the real estate group.

The US broker reduced its target price for the FTSE 250-listed firm to 300p from 340p, with the shares currently trading at 335.20p, down 3.6% on Thursday’s close.

READ: Bullring owner Hammerson says 2018 was 'tough' as it posts annual loss

In a note to clients, Stifel’s analysts pointed out that Hammerson has identified £900mln of potential asset sales, of which they assume £500mln will be completed during full-year 2019, in line with the company's target.

They then expect a further £200mln per annum in the following two years, with proceeds financing capex and reducing net debt.

However, the analysts said; “In reality, it may prove challenging to execute the planned disposals in a timely manner and at a reasonable price relative to book, given the current market conditions and structural headwinds UK retail continues to face.”

They assume the disposals are completed at an average 10% discount to book value to reflect this.

The analysts said the primary risk to their negative investment thesis is M&A activity, if a surprise bidder were to emerge for the company, although they added that none spring to mind.

Quick facts: Hammerson

Price: 264.4 GBX

LSE:HMSO
Market: LSE
Market Cap: £2.03 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Revenue guidance from OptiBiotix as it eyes NASDAQ listing

OptiBiotix Health (LON:OPTI) provides a commercial progress update, explaining why in their financials some items are separated. CEO Stephen O'Hara tells Proactive London what's behind his thinking adding that Optibiotix hopes to reach profitability in 2020. News here too on Sweetbiotix and...

4 hours, 29 minutes ago

2 min read