Segro Stock Upgraded to Buy Amidst Shifting Market Sentiment

Shares in Segro PLC (LON:SGRO) are attracting renewed attention as analysts adjust their outlook on the industrial property giant.

The stock has experienced a series of rating changes, reflecting evolving perspectives on its growth prospects and valuation.

Goldman Sachs Signals a Turnaround

Goldman Sachs recently upgraded Segro to ‘Buy' from ‘Neutral,' setting a price target of 730p, an increase from the previous 690p.

This upgrade is noteworthy, as Goldman Sachs previously identified Segro as the “worst performing stock” within its coverage.

The firm now believes the valuation is “compelling,” spurred by management commentary that suggests an improvement in demand. Notably, the stock is down 10.39% year-to-date.

This upgrade signals a potential turnaround in market sentiment towards Segro, driven by expectations of renewed growth and an attractive entry point for investors.

Contrasting Views and Cautious Notes

However, it is important to note that not all analysts share the same level of optimism. At the start of the month, Morgan Stanley downgraded Segro to ‘Equal Weight' from ‘Overweight,' reducing the price target from 850p to 750p.

The firm acknowledged that SEGRO may be beyond the point of “peak deterioration” in sentiment and demand for logistics. However, they cautioned that tangible evidence of this turnaround “may take a while to come through,” influencing the decision to adjust the rating.

Meanwhile, in August 2024, UBS downgraded Segro from ‘Buy' to ‘Neutral', citing slower-than-expected growth in estimated rental value (ERV). UBS reduced its price target to 985p from 1,045p. Despite this downgrade, UBS maintained a positive view of the potential upside from Segro's data center pipeline. Interestingly, UBS then raised its rating on Segro to ‘Buy' from ‘Neutral' on March 11, 2025, setting a price target of 875p, down from the previous target of 985p.

Overall, TradingView data shows that 11 analysts currently have a ‘Buy' rating on the stock, with four assigning it a ‘Hold' rating and two a ‘Sell' rating.