Analysts at Liberum reiterated their ‘sell’ recommendation for shares of Hammerson, telling clients that there was “still a long way to go” to rebuild the property developer’s business.
Although there were signs of capital value stabilisation and earnings were recovering, at 45%, the firm’s loan-to-value remained “too high to be comfortable”.
Furthermore, its better-than-expected earnings per share were flattered by one-offs.
One fix for the balance sheet might be to sell its Value Retail assets, but those were Hammerson’s crown jewels, while its “complex” joint-venture structures complicated its divestment options.
Value Retail had a net asset value of £1.1bn as at 31 December, according to Liberum.
The broker’s analysts reiterated their recommendation to ‘sell’ the shares and 31.0p target price.
