Analyst John Cahill of Stifel Nicolaus maintained a Buy rating on Picton Property Income (PCTNF – Research Report), reducing the price target to p75.00.
John Cahill has given his Buy rating due to a combination of factors that highlight Picton Property Income’s strategic financial maneuvers and market performance. The company has successfully completed the sale of its Longcross, Cardiff property, achieving a price significantly above its previous book valuation, which demonstrates effective asset management and value realization. This transaction is part of a broader strategy where Picton has sold multiple office assets, raising substantial capital that has been strategically redeployed to enhance shareholder value through planned capital expenditures, a share buyback program, and debt reduction.
Picton’s shares are currently trading at a notable discount to their net tangible assets, presenting a potential value opportunity for investors. Additionally, the company offers a fully-covered dividend yield of 5.1%, which is attractive in the current market environment. The stock has outperformed the broader market, supported by its diversified portfolio with a strong industrial focus and reduced office exposure. These factors, combined with a low loan-to-value ratio following recent disposals, suggest potential for further positive re-rating, justifying the Buy recommendation.