Citi reiterates 'buy' rating on Shaftesbury

(Sharecast News) - Citi reiterated its 'buy' rating on Shaftesbury Capital on Tuesday, driven by historically opportunistic valuation levels and significant rental income support to earnings per share and net asset value. It also cited the potential for upside risk to estimates from asset recycling external growth opportunity.

"Despite recent market volatility, we anticipate substantial EPS and NAV growth over the next five years significantly ahead of consensus, fuelled by strong reversion conversion and rising market rents in London's West End," the bank said.

"We believe the current share price dislocation presents an attractive buying opportunity given the positive growth already being delivered, estimated to continue and intensify, should trigger a narrowing of the stock discount and eventually a premium to growing private market valuations."