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(Sharecast News) - Analysts at RBC Capital Markets updated their model on Howden Joinery to include the firm's recently completed acquisition of DIY Kitchens, aligning its estimates ahead of H1 results on 23 July.
RBC Capital, which hiked its target price on the stock from 900p to 960p, said its changes solely reflected the addition of DIY Kitchens and said it had made no changes to its assumptions for the underlying business.
"Our adjusted earnings per share estimates increase by 1.7%/4.7%/5.1% for FY26-28," said the Canadian bank, which reiterated its 'sector perform' rating on the stock.
"We forecast sales of £1.043bn and PBT of £120m, reflecting the typical H1 PBT weighting of 34% (ex DIY). Our FY26E PBT pre DIY Kitchens was £355m."
RBC Capital added that it believes Howden can sustain a 6% ten-year revenue compound annual growth rate, through continued depot expansion, maturing depots and subsequent market share gain.
Berenberg lifted its price target on Segro from 915p to 995p, saying this represented fair value at a 10% premium to adjusted net asset value, after modelling a substantial future value‑creation runway across the group's development pipeline.
Berenberg said Segro's recent capital markets day underlined strong momentum in its European industrial and logistics markets and set out how the company plans to capitalise on a 3.0 GVA power‑bank opportunity through fully‑fitted data‑centre delivery.
The German bank contrasted Segro's strategy with Prologis' rejected third proposal, noting Segro's more levered approach left the shares more exposed to macro swings, even as its urban and European asset exposure, development track record and larger data‑centre opportunity offered clear strategic advantages. It said Segro was not capital‑constrained but shareholders would need to accept structurally higher beta and greater share‑price volatility than under Prologis' balance‑sheet‑led model.
Using project‑specific discount rates of 8-15%, Berenberg calculated an asset‑level valuation of 1,204p, including 83p for power capacity not valued at the CMD, but said market cyclicality and long‑term terminal growth assumptions meant fair value sat lower at 995p. Adjusted EPS forecasts were raised by up to 9% through 2030, incorporating the UK Big Box joint venture and planned data‑centre leasing.
Berenberg, which has a 'buy' rating on the stock, added that Segro has historically traded at a premium when forward rental growth exceeds 8.5% and leverage remains investment‑grade, and noted shareholders face a 22 July put up or shut up deadline, with the option to accept any firm offer, support Segro's defence for a higher bid, or wait for a potential white knight.
Reporting by Iain Gilbert at Sharecast.com
