RBC Capital Markets upgraded Workspace to ‘outperform’ from ‘sector perform’ on Wednesday, hiking the price target to 1,050p from 750p as it said a recovery was not reflected in the shares.
“We believe Workspace’s share price performance since the pandemic broke reflects the negative impact on its business from its flexible leases, but none of the potential for a strong recovery,” RBC said.
“Its business is well-placed for such a recovery in our view, something that does not appear to be reflected in consensus forecasts.”
RBC said the target price increase results in 28% potential total return.
At 0930 BST, Workspace shares were up 1.5% at 840.50p.
