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.
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.