Peel Hunt upgrades Capital & Counties to 'buy'
Peel Hunt upgraded its stance on shares of Capital & Counties to 'buy' from 'add' on Thursday, lifting the price target to 300p from 280p as it pointed to "significant upside" from a double disposal.
FTSE 250
19,719.37
17:09 24/04/24
FTSE 350
4,419.71
17:09 24/04/24
FTSE All-Share
4,374.06
16:44 24/04/24
Real Estate Investment & Services
2,162.90
17:09 24/04/24
Shaftesbury Capital
134.60p
16:34 24/04/24
The broker noted that a credible buyer for Earls Court appears to have emerged in the form of Delancey/APG and said that together with an easing of UK political uncertainty, "a transaction now feels more likely than not".
"Our attention, and enthusiasm, turns to the £2.6bn Covent Garden estate, which in our view epitomises a trophy asset," it said.
In a clean standalone vehicle, it could prove highly attractive to global capital pools and offer a once in a generation opportunity to gain exposure to a quasi 'landed estate', it said.
"A small premium for Covent Garden would more than offset a material discount at Earls Court, with our analysis suggesting upside of between 30% and 45% to the current share price."
At 1240 GMT, the shares were up 2.3% at 257.80p.