Where Main Street Meets Wall Street

Buy Shaftesbury and Capital and Counties because they are there, says broker


Buy PLC (LON;SHB) and PLC (CapCo) shares because London’s West End is always going to be there and in demand  Berenberg argued today.

“We  continue  to  forecast  strong  growth  prospects  for both of the London office specialists as markets recover.”

“Current valuations,  the  uniqueness/irreplaceability  of  both  portfolios,  the  recovery potential  of  the  West  End  and  current  weight  of  private  equity  capital  awaiting deployment  make  external  M&A  a  possibility,” added the broker.

More likely though is a carve-out of Shaftesbury’s Covent Garden portfolio to 25% shareholder CapCo (), said Berenberg.

The targets are 200p for Capco and 725p for Shaftesbury against prices respectively today of 172.5p, up 3.4%, and 600.5p, up 2.4%.

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