Hammerson Shares Attractively Valued? Double Upgrade Says So

Hammerson shares (LON:HMSO) are attracting renewed attention following a significant upgrade from Barclays, signaling a potential shift in market sentiment towards the real estate investment trust (REIT). The analyst's revised outlook, coupled with recent strategic maneuvers by the company, suggests a potentially more favorable trajectory for HMSO.

The market responded positively to Barclays analyst Eleanor Frew's upgrade, which moved the stock from “Underweight” to “Overweight.” Hammerson shares are trading 0.13% higher today, on an otherwise down day for markets, as Frew also substantially increased the price target from 260 GBp to 330 GBp.

The analyst's rationale centers on Hammerson's improved growth profile and attractive valuation relative to its peers within the REIT sector. This assessment points towards an undervaluation that could present an opportunity for investors.

Hammerson's recent corporate actions provide context for this upgraded outlook. Notably, the company completed the acquisition of the remaining 50% stake in Birmingham's Bullring and Grand Central shopping centers on August 8. This move consolidates ownership and is expected to enhance income and earnings, offering greater control and potential for value creation within these key retail assets.

With the FTSE 100 trading 1.41% lower today, even a mild move higher for Hammerson provides a boost for HMSO bulls.