Broker snap: Peel Hunt ups NAV forecasts for Grainger

11th Aug 2011 12:26

Peel Hunt has reiterated its buy rating on Grainger, the FTSE 250 residential landlord, saying that the group's interim management statement released on Thursday showed "further resilient data"."Led by a management team which is delivering visible corporate deals to maximise value in a stagnant housing we continue to see clear potential in Grainger's shares - trading at little over half estimated break-up," the broker said.Peel Hunt has raised its net asset value (NAV) forecasts for the year ending September 2011, noting that the significant fall in UK house prices that it had predicted has not yet been witnessed. "We have therefore shunted our underlying portfolio from -6% for the full year to a (precautionary) -2% for H2 2011 and a further contingency is assumed for 2012 of -3%." This increases its discounted cash flow NAV forecasts up by 8.4% to 193p.A target price of 140p is kept.Shares were trading 1.20% higher at 101p by 12.25pm on Thursday.BC