LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg raised their target price on real estate investment trust Segro from 1,500.0p to 1,560.0p on Friday, stating the firm was now "justifying its premium rating".
Berenberg said although a strong performance was expected from Segro, the company's 2021 results, with a 42.5% total accounting return, were a "knockout".

The German bank noted that with the firm's pipeline extended, demand likely to remain elevated, rental growth expectations raised and Segro's positioning being standout, it remains bullish and continues to think that the stock's recent share price performance remained "unbefitting of the company's latent potential".

"Against this strong demand backdrop, we expect Segro to deliver a further 801,400 square metres of new industrial/logistics space in full-year 2022 at a 57% profit on cost," said the analysts, who stood by their 'buy' rating on the stock.

"With the company 67%-weighted to high-growth urban locations and circa 42% of contracted rent being subject to rent reviews in the next three years, Segro's near-term rental and capital prospects remain standout."

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