Segro: Solid Operations but Limited Upside and Valuation Constraints Drive Shift to Hold

Goldman Sachs analyst Jonathan Kownator downgraded the rating on Segro plc (REIT) to a Hold yesterday, setting a price target of p890.00.

Jonathan Kownator has given his Hold rating due to a combination of factors, including a more limited upside to his revised price target despite solid operational performance. While he raised his target price to 890p, the implied return from the current share price is modest, and valuation metrics such as the forward earnings yield suggest the stock is now more fairly priced relative to its fundamentals.

He also anticipates some pressure on future profitability as Segro accelerates its shift toward fully fitted data centers, which is reflected in his reduced EPS projections for 2026-2030. In addition, the shares have significantly outperformed both the broader European market and his sector coverage since their inclusion on the Buy List, leading him to conclude that much of the positive story is already reflected in the current valuation, justifying a Neutral stance.

In another report released on February 20, Kepler Capital also maintained a Hold rating on the stock with a p760.00 price target.