Broker tips: British Land, Big Yellow, Winkworth

22nd Nov 2010 14:18

Long-term investment opportunities attract Panmure Gordon to real estate group British Land (BL), as the broker expects a potential acquisition to expand the group's strong portfolio of retail properties. Weekend press reports suggest that BL has agreed heads of terms to acquire the Drake Circus shopping centre in Plymouth for £235m, which would "sit well among BL's assets", says the broker. With the shares offering the best dividend yield in the broker's "coverage universe", the stock is seen as an attractive, long-term investment proposition. A 'buy' is retained with a target price of 548p. Although underperforming sector peers in valuation terms, KBC Peel Hunt believe that self-storage firm Big Yellow is better financed and deserving of an improved share rating.The broker says that the group's decision to halve the number of new store rollouts, along with low costs of funding and gearing, is the right approach in light of a continued slow down in the housing market. Despite trimming its full year NAV numbers, the broker retains a 'buy'.House broker finnCap expects estate agent Winkworth to benefit from an expanding network, as a strong balance sheet affords the group the opportunity for more offices, despite a subdued housing market. The group's branch network has doubled to 107 in the year-to-date, compared with 54 this time last year. "Whilst the housing market remains subdued, organic expansion (circa 10% per annum) and a strong first half underpin current year estimates", says Hall, who is keeping his 90p price target.