Jefferies downgrades Derwent London, slashes price target

(Sharecast News) - Jefferies downgraded Derwent London to 'underperform' from 'hold' on Friday as it slashed the price target to 1,550p from 1,820p, with the shares at a 44% discount to FY26 net asset value of 3,282p and with a forward dividend yield of 4.5%. The broker noted that Derwent London is selling £1bn over three years and guides to earnings up 30% by FY30 to join Land Securities, British Land and Great Portland Estates in giving long-term guidance to compensate for "anaemic" returns.

"Share buybacks are a new option, but the drop, build, sell, repeat merchant developer model is, we think, broken," Jefferies said.