JPM cuts VGP to 'neutral' as it sees 'better value' elsewhere in logistics names

VGP NV

07/11/2023 07:50

** J.P.Morgan downgrades its rating on Belgian logistics
real estate developer VGP  VGP1.BR  to "neutral" from
"overweight", citing lowered assumptions for rental growth and
saying it prefers its peers 
        ** The brokerage cuts its EPS estimates for 2023 and
2024, and slashes PT by 53% to 85 euros, saying its new model is
less optimistic about rental growth and debt costs 
  
    ** "We see better value in its UK peers and CTP  CTPNV.AS ,
which offer more upside and better visibility, in our view," JPM
    ** Another peer the broker prefers is UK-listed Segro
 SGRO.L 
    ** VGP should benefit from growth potential in Central and
Eastern Europe (CEE), but in Germany - where it has 54% of
portfolio exposure - land scarcity may limit investment
opportunities, JPM says
        ** Out of 10 analysts covering VGP, three rate it
"strong buy" or "buy", four rate it "hold", and three rate it
"sell"
  

 (Reporting by Olivier Sorgho)
 ((Olivier.Sorgho@thomsonreuters.com))