Deutsche Bank has reiterated a Hold rating and 850p price target on Segro (LSE:SGRO), Europe's largest listed logistics real estate investment trust, as analyst Christen Hjorth picks up coverage of the stock in a transfer of responsibility.
Hjorth frames Segro as a diversified logistics landlord managing approximately £22 billion in assets, split roughly 60:40 between the UK and Continental Europe, with roughly 55% of exposure in urban logistics, 35% in big-box warehouses, and the remainder primarily in data centres.
The coverage transfer arrives against a charged backdrop: US industrial property giant Prologis publicly pushed for a takeover of Segro on 23 June after Segro's board issued an unequivocal rejection of the combination proposal, with Prologis citing Segro's net debt to enterprise value of 37% and net debt to adjusted EBITDA of 8.4x as constraints on the company's ability to realise its development pipeline.
Under the UK Takeover Code, Prologis must announce a firm intention to make an offer or walk away by 17:00 on 22 July, making that deadline the key near-term catalyst for the stock.
