Barclays Downgrades Hammerson Plc (LON::LN) Stock - What Investors Need to Know
Barclays recently downgraded Hammerson Plc (LON::LN) (OTC: HMSNF) from Overweight to Equalweight, with a new price target of GBP2.95. Despite recent positive actions by Hammerson, including a rights issue and share buyback program, Barclays believes the company's earnings growth may lag behind competitors like Klépierre and Unibail-Rodamco-Westfield (URW).
The firm also points to Hammerson's scale as insufficient and highlights a high cost ratio that requires growth. Barclays is recommending investors rotate out of Hammerson and into Covivio, which offers higher earnings yield potential.
The new price target reflects Barclays' updated valuation of Hammerson's stock in light of the company's financial situation and market position. Investors should consider these factors when making investment decisions in the real estate sector.
In conclusion, despite recent positive developments, Barclays' downgrade of Hammerson highlights potential challenges facing the company. Investors should carefully evaluate these factors and consider alternative investment opportunities in the market.