Barclays upgraded Segro’s rating to Equalweight from Underweight and raised its price target to 970 pence from 625 pence, citing the U.S. logistics giant Prologis’ recommended offer to acquire the U.K. warehouse landlord for £9.78 per share.
The new target is anchored to Prologis’ proposal and incorporates potential upside from Segro’s warehouse and data center development pipeline. Barclays also set a downside scenario target of 740 pence, reflecting the approximate share price if the deal does not complete.
Berenberg, by contrast, downgraded Segro to Hold from Buy and set a price target of 991 pence. The firm cited ongoing acquisition talks between Segro and Prologis as a key valuation driver, though it flagged execution risk tied to the deal’s structure.
Prologis confirmed its final recommended offer on August 4, valuing Segro at £9.78 per share. To fund the potential acquisition, Prologis announced a $2 billion stock offering. Segro’s board has approved the transaction, which remains subject to shareholder and regulatory approvals.
Segro reported adjusted pre-tax profit of £268 million in the first half of 2026, a 6.3% increase year-over-year, while adjusted earnings per share rose 6.6% to 19.3 pence. Net rental income grew 5.3% on a comparable basis, and the company secured £24 million in pre-let agreements, up from £3 million in the prior-year period.
The company also highlighted its 47-year streak of consecutive dividend payments, with shareholders set to receive a final dividend of 22.54 pence per share. The total payout through August 18, 2026, is expected to reach approximately 100 pence. Segro’s shares have delivered a 54% return over the past 12 months and are trading near their 52-week high.
InvestingPro data shows Segro trading at a price-to-earnings ratio of 43.8, indicating the stock is considered overvalued relative to its fair value estimate.
