Morgan Stanley lifts WDP stock rating to Equalweight

Published 13/02/2025, 10:38
Morgan Stanley lifts WDP stock rating to Equalweight

On Thursday, Morgan Stanley (NYSE:MS) analyst Bart Gysens revised the rating for Warehouses De Pauw (WDP:BB), moving it from Underweight to Equalweight, while setting a price target of EUR 25.00. The change in rating comes after observing that WDP shares had significantly underperformed within the sector throughout 2024.

Gysens noted that the anticipated demotion of WDP from the MSCI index, which could have prompted short-term volatility, is now a concluded risk event. The index changes are scheduled to take effect on February 28. With this consideration and the current positive outlook on European logistics, the analyst anticipates that WDP will not continue to underperform moving forward.

Despite the upgrade, Gysens mentioned that while the sentiment towards the company has improved, Morgan Stanley still sees more attractive investment opportunities in other areas of the property sector. The firm maintains an "Attractive" rating on the sector, highlighting logistics peers such as CTP and Segro (LON:SGRO) as examples.

The adjustment of WDP’s rating reflects a shift in the perceived stability of the company after the index rebalancing risk has passed. Morgan Stanley’s assessment suggests that the outlook for WDP is now more neutral, with the firm expecting the company’s performance to align more closely with the broader market trends in European logistics.

Investors and market watchers will be keeping an eye on WDP’s stock performance as the MSCI index changes take effect and as the company navigates the evolving landscape of the European logistics sector. The updated rating and price target from Morgan Stanley provide a new perspective on the stock’s potential trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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