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Investing.com - Kepler Cheuvreux initiated coverage on Shaftesbury Capital PLC (LON:SHC) with a Reduce rating and a price target of GBP1.30, according to a research note released Monday.
The research firm acknowledged that Shaftesbury Capital is positioned to deliver solid underlying EPS growth through 2028, but questioned whether this growth would justify the stock’s premium earnings multiple.
Kepler Cheuvreux assessed Shaftesbury Capital’s risk profile as "better than average, but far from exceptional," basing long-term forecasts on historical trends such as the 1.3% like-for-like annual real rent growth observed from 2008 to 2018.
The firm noted that while efficiency gains could potentially boost EPS growth, refinancing spreads would likely create a drag on performance, despite some positive micro factors.
Kepler Cheuvreux warned that any shift in investor focus toward earnings-based valuation metrics could risk increasing Shaftesbury Capital’s already low yield.
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