Shaftesbury Capital (SHC – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst yesterday. Analyst Bart Gysens from Morgan Stanley maintained a Hold rating on the stock and has a p165.00 price target.
Bart Gysens has given his Hold rating due to a combination of factors impacting Shaftesbury Capital. The company has demonstrated strong operational results with an 8% growth in market rents and a 5% increase in portfolio valuation. However, despite these positive metrics and a reported NAV slightly above consensus, the shares are trading at a significant NAV discount of 38%.
While the sector is rated as Attractive and Shaftesbury Capital is expected to perform well in absolute terms, Gysens maintains a Hold rating because he sees greater upside potential in peer companies. The primary driver for Shaftesbury remains rental growth, which is robust, yet potential medium-term challenges such as a weaker consumer market could limit share performance. Additionally, other UK REITs with higher-yielding assets may offer similar returns, making Shaftesbury’s shares less compelling in comparison.
SHC’s price has also changed moderately for the past six months – from p147.500 to p124.900, which is a -15.32% drop .