SEGRO PLC (LSE:SGRO)’s recent share price weakness is a buying opportunity according to JP Morgan with the boom in industrial warehouse property showing no sign of slowing down.
A shift into value plays is behind the recent underperformance, argues JPM, but 2021 will be a record year for logistics with capital and rental growth in the second half outpacing any previous half-year period over the last decade.
These results should provide a strong catalyst to drive a re-rating through 2022, with the US bank raising its target price to 1,450p implying a 14% total return.
Shares in SEGRO rose 2.8% to 1,330p.