Deutsche Bank downgrades Workspace to 'hold'

(Sharecast News) - Deutsche Bank downgraded Workspace on Monday to 'hold' from 'buy' and cut the price target to 400p from 480p as it said the company's fourth-quarter update painted "another challenging picture" for the business. Despite relatively resilient enquiry levels and conversion rates, like-for-like occupancy remained broadly flat at 82%, even with some further mild discounting, the bank noted.

"However, it is clear the new management of Workspace do not intend to simply lever price to fill vacancy but rather reposition itself as the value option for occupiers (in a competitive field) and better monetise the platform," it said.

"But this will take (even more) time and impact profitability (and valuations) even further in the near term."

At 1020 BST, the shares were down 2.7% at 341.20p.