Broker snap: Panmure upbeat about British Land

20th Nov 2012 10:56

Panmure Gordon has kept its 'buy' recommendation and 570p target price for real estate investment trust British Land following an in-line first half."You own British Land in the current environment because as we have said in the past: 'it does what it says on the tin'," said analyst Mark Hughes. "Its stable portfolio and predictable income stream continue to deliver IPD [Investment Property Databank] outperformance and a predictable and attractive dividend yield (5.1%)."First-half figures more or less met Panmure's forecasts: profit before tax came in at £137m, earnings per share (EPS) were 15.2p and net asset value (NAV) was 596p per share.The broker said that it will reassess its full-year forecasts after an analyst meeting later today but thinks that there could be room for a small (around 1%) upgrade to EPS from the current 29.1p estimate.The stock is trading at a 14% discount to spot NAV, or a 15% discount to Panmure's full-year NAV estimate. BC