Barclays has upgraded its rating on Segro PLC to equal-weight from underweight and raised its price target to £9.70 from £6.25, citing the terms of Prologis' revised takeover proposal for the logistics property group.
The bank’s move follows Prologis’ announcement on August 4 of its best and final recommended offer for Segro, valuing the company at 978 pence per share. Barclays noted the bid implies a total value of approximately 1,000 pence per share when including a 22.54 pence final dividend payable by August 18, 2026. Prologis also disclosed a $2 billion share offering to fund potential acquisitions, including the Segro deal.
Berenberg, in contrast, downgraded Segro to hold from buy and set a price target of £9.91, reflecting a narrower premium to the bid price than Barclays’ valuation.
Segro’s shares have gained 54% over the past year and are trading near their 52-week high. The group has maintained dividend payments for 47 consecutive years, according to InvestingPro. Barclays’ downside scenario of 740 pence assumes the bid fails and Segro reverts to a stand-alone valuation.
Segro reported a 6.3% rise in adjusted profit before tax to £268 million in the first half of 2026, while adjusted earnings per share increased 6.6% to 19.3 pence. Like-for-like net rental income grew 5.3%, supported by £24 million in pre-lets, up from £3 million a year earlier. The stock trades at a P/E ratio of 43.8, which Barclays described as elevated relative to fair value.
