logo-loader
viewWorkspace Group plc

Workspace shares struggle after Berenberg downgrade

Berenberg said shares look expensive and called "market uncertainty" the reason for the recent flexible workspace craze

Workspace Group plc -
Workspace's portfolio is based in London

Shares in London-based office specialist Workspace PLC (LON:WKP) dipped lower after a downgrade to ‘sell’ from 'hold' by Berenberg.

“Shares are now expensive,” said the German investment bank, as it warned that the company operates in a highly cyclical sub-sector that has gained interest recently because of “wider market uncertainty” with tenants unwilling to commit to new space on a long-term basis.

Nevertheless, Berenberg upped its target price from 925p to 950p and said that “reduced competition” from the likes of WeWork led it to increase outer-year earnings estimates slightly.

The property group, which rents out flexible freehold office spaces, was re-rated by investors after an upbeat set of interim results on Wednesday revealed growing customer enquiries and conversion to monthly lettings.

READ: Flexible boost for Workspace as property values increase

A 10% half-year dividend hike underlined its confidence as net assets rose 2.2% to £2.7bn.

Shares in Workspace were down 3% at 1,068p in Friday trading.

Quick facts: Workspace Group plc

Price: 1177 GBX

LSE:WKP
Market: LSE
Market Cap: £2.13 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

Things coming together nicely in Greenland, says Bluejay Mining's CEO

Rod McIllree, Bluejay Mining PLC’s (LON:JAY) chief executive, tells Proactive that all three of its projects in Greenland are shaping up nicely with plenty of interest from mining giants. Dundas is the flagship and here a bulk sample of mineral sands has been shipped to a Rio Tinto facility...

2 days, 14 hours ago

2 min read