Barclays downgraded Segro (LON:SGRO) to “underweight” from “equal weight” and cut its price target to 550p from 700p, citing weaker cash flow yields, slowing growth, and limited acquisition activity compared with peers, in a note dated Monday.
Segro shares closed at 639.40p on Aug. 15, making the new target a 21% downgrade, equivalent to a 14% downside from the current price.
The brokerage said Segro’s half-year results in 2025 confirmed risks of lower annual capital spending caused by slower warehouse take-up and tenant decision-making delays.
The British property investment and development company had guided for a turnaround after the 2024 results and reiterated expectations of a recovery in the first-half 2025 call, but Barclays noted the improvement has not materialized.
Segro’s forecast cash flow yield is 5.6% in fiscal 2025, rising to 6.3% by 2029. That trails the simple average of its overweight-rated peers, which Barclays projects at 6.1% in 2025 and 7.7% in 2029.
Recurring earnings per share are forecast at 36.1p in 2025 and 37.1p in 2026. Dividend yield is expected at 4.8% in 2025, rising gradually to 5.4% by 2029.
Net asset value per share is set to grow modestly, from 906.6p in 2024 to 964.2p by 2027, equivalent to an average 2.1% growth rate.
Total accounting return is forecast at 6.47% over the 2025-2029 period, lagging behind CTP, WDP, and Tritax Big Box.
Barclays downgraded Segro (LON:SGRO) to “underweight” from “equal weight” and cut its price target to 550p from 700p, citing weaker cash flow yields, slowing growth, and limited acquisition activity compared with peers, in a note dated Monday.
Segro shares closed at 639.40p on Aug. 15, making the new target a 21% downgrade, equivalent to a 14% downside from the current price.
The brokerage said Segro’s half-year results in 2025 confirmed risks of lower annual capital spending caused by slower warehouse take-up and tenant decision-making delays.
The British property investment and development company had guided for a turnaround after the 2024 results and reiterated expectations of a recovery in the first-half 2025 call, but Barclays noted the improvement has not materialized.
Segro’s forecast cash flow yield is 5.6% in fiscal 2025, rising to 6.3% by 2029. That trails the simple average of its overweight-rated peers, which Barclays projects at 6.1% in 2025 and 7.7% in 2029.
Recurring earnings per share are forecast at 36.1p in 2025 and 37.1p in 2026. Dividend yield is expected at 4.8% in 2025, rising gradually to 5.4% by 2029.
Net asset value per share is set to grow modestly, from 906.6p in 2024 to 964.2p by 2027, equivalent to an average 2.1% growth rate.
Total accounting return is forecast at 6.47% over the 2025-2029 period, lagging behind CTP, WDP, and Tritax Big Box.
Source :
https://www.investing.com/news/stock-market-news/barclays-cuts-segro-to-underweight-lowers-price-target-to-550p-4196663
