LONDON (ShareCast) - Shares of SEGRO raced ahead on Thursday morning after the industrial property specialist's interim results, but Jefferies has maintained its 'hold' recommendation on the stock, saying that 'the hard work starts' in the second half.

Net asset value per share of 317p came close to Jefferies's forecast of 320p. However, earnings per share of 9.9p came in 16% ahead of the 8.5p estimate, owing to lower-than-expected net interest payable due to lower intreat rates, currency translation and the timing of the receipt of disposal proceeds.

Jefferies said in a research note: "With good progress selling UK non-core assets (£503m year-to-date), the focus has shifted to the European non-core assets which will be more difficult.

"Operationally, the results were robust with voids flat at 9.1%. For now, top line growth is likely to come from developments or acquisitions, the pace of which will be limited by the 49% loan-to-value."

The broker has retained its 232p target price for the shares.

By 10:47, the stock was up 5.73% at 239.8p.

BC

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