Goldman sees positive catalysts for British Land, raises target price

15th May 2015 10:24

British Land extended gains on Friday morning following a solid annual report a day earlier, as a host of analysts issued positive ratings for the stock.Goldman Sachs and Canaccord Genuity both raised their target prices for the shares and kept 'buy' ratings, while Numis Securities reiterated an 'add' recommendation and Exane BNP Paribas left its 'outperform' stance unchanged.Goldman, which lifted its target from 975p to 985p, it said the results showed a "source of opportunity" for the real estate investment trust.It highlighted a "variety of positive catalysts" for the stock going forward, ranging from rent growth in the London office market, positive trends in the retail portfolio, a lower exposure to superstores and a reduction in financing rates."We believe FY2014/15 results provided further/clearer evidence of how BL has positively repositioned its business; e.g., 64% of its portfolio now in London and south east UK, an EPRA occupancy rate up to 97.1% and a well-replenished development pipeline offering significant potential," the US bank said.British Land's loan-to-value ratio reduced to 35% in the year ended 31 March from 40% previously, which Goldman said "offer[s] a reasonable balance between capturing the upside from the current positive macro without putting BL's longer-term strategic focus at risk".The bank said: "Management is running the business based on expectations of rent growth for at least a couple of years, consistent with our view of the macro. We re-iterate our 'buy' rating."The stock was up 1.1% at 876o by 11:16.