Brokers upgrade Green Reit price target

Irish stockbrokers Davy and Goodbody have upgraded their forecasts for Green Reit following a strong recent set of full-year results for the property group.

Goodbody lifted its target price for Green Reit to €1.75 while Davy pushed its target up to €1.78 for 2018, on the back of revised net asset value (NAV) forecasts. Goodbody holds a “buy” rating on the stock while Davy, one of Green Reit’s joint brokers, held its “outperform” rating.

The shares were trading at €1.50 ahead of the upgrades.

"Exceptional profits at key projects, most notably Block H Central Park (€32 million versus and expected €17 million) combined with continued capital growth helped NAV rise above expectations," Goodbody analyst Colm Lauder wrote in a note to clients.

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Additionally, as commercial property yields become pressurised, Mr Lauder notes that property valuations are “trending stronger”.

Davy analyst Colin Grant said Green's total forecast return in 2018 of 12.1 per cent was likely to be one of the strongest in the pan-European property sector.

On the future outlook, Mr Lauder sees the company’s Horizon logistics park in Swords, Dublin as offering the greatest expansion possibility, “with long-term potential to build out Ireland’s largest and best-located logistics park, even rivalling those of the Heathrow corridor in the UK”.