Supermarket Income REIT PLC (LSE:SUPR) is a ‘buy’ with the broker Liberum, whose analysts believe its asset base is undervalued.
The broker has set a target price of 140p, which is 12% premium to the current share price.
The research was published after a robust set of half-year results from the real estate investment trust, which showed the company was performing in line with expectations.
In the note, Liberum pointed out the supermarket sector, in which it is exclusively invested, remains buoyant.
“Grocery volumes remain well ahead of pre-pandemic levels, supportive for ERV [estimated rental value] growth,” investors were told.
“We continue to think [Supermarket Income REIT’s] asset base is undervalued.”
Earlier, the real estate investment trust reported first-half results that were in line with expectations, with 5% NTA (net tangible asset) growth driven by a 2% increase in property values.
There was also a £37m valuation uplift from the first two option exercises in its joint venture with British Airways Pension Trust.