Segro: Credit Suisse initiates coverage with 'buy' rating
(CercleFinance.com) - This morning Credit suisse initiated its coverage of the stock of the UK property logistics group Segro with a buy rating ("outperformance").
The broker has a target price of 745 pence for the share, meaning upside potential of around 14%.
"Segro adds the attractive industrial & logistics sector to our existing coverage," the broker's report says. According to Credit suisse, the logistics segment has outperformed the rest of the property market over recent years, due to the soaring growth in e-commerce. Indeed, the group is exposed to the UK (2/3 of its assets, although if its growth were to slow, it would remain above those of other real estate stocks.
Even in the event of a "hard Brexit," Segro is highly exposed to a domestic logistics market that will remain dynamic, in particular as its urban warehouses represent “barriers to entry” that are difficult to compete with.
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