RBC Capital Markets reiterates 'outperform' rating on Tritax Big Box
Tritax Big Box Reit
RBC Capital Markets reiterated its 'outperform' rating and 195.0p target price on Tritax Big Box on Monday following the group's recent trading update.
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RBC Capital increased its net asset value per share forecasts by 4-5% to roughly 178.0p for end-2022, compared to a company-compiled consensus range of 168.0p-195.0p.
The Canadian bank also highlighted "positive commentary" around Tritax's occupier markets and its "relatively strong" balance sheet.
"Big Box's share price offers a 5.3% 2023 earnings yield, which we believe is attractive given a high level of visibility over sustained EPS growth over the long term. We believe capturing current reversion will more than offset the drag from higher financing rates," said RBC.
"Hedged undrawn facilities should also boost the EPS accretion from developments near-term. Likewise, any decline in the cost of exercising land options."
Reporting by Iain Gilbert at Sharecast.com