Kepler Cheuvreux upgrades SEGRO to Buy, raises target 30%
Kepler Cheuvreux announced that it has upgraded UK warehouse landlord SEGRO plc from a "hold" rating to a "buy" recommendation. In conjunction with the rating change, the brokerage lifted its price target to 1,010 pence per share, up from the previous target of 780 pence, representing an increase of roughly thirty percent.
The analyst team cited greater management disclosure, which it says has strengthened confidence in SEGRO’s long‑term earnings potential and intrinsic value. Enhanced disclosures have allowed the firm to extend its earnings forecasts through 2035, basing valuation on both projected cash‑flow generation and net asset value.
Kepler projects that SEGRO will deliver earnings per share of approximately 50 pence by the year 2030 and 56.5 pence by 2035, equating to a compound annual growth rate of about six percent from 2025 onward.
While acknowledging that a potential takeover by US logistics giant Prologis may never materialise, the brokerage cautioned that investors should not entertain any acquisition offer below the 1,010‑pence level. It argued that the market debate should shift from the price a bidder might be willing to pay to the underlying intrinsic worth of the business.
At the time of reporting, SEGRO shares were trading around 884 pence in London, showing little change and remaining broadly in line with the FTSE 100 Index.