Broker tips: Segro, St James's Place
By Iain Gilbert
Date: Friday 20 Feb 2026
(Sharecast News) - Shore Capital has kept a 'buy' rating for Segro after strong results from the industrial real estate group on Friday, highlighting the company's "impressive" rental growth and the stock's attractive investment case.
Full-year results were consistent with Shore Capital's forecasts, with like-for-like rent rolls up 6.0% and adjusted pre-tax profits up 8.3%, while both earnings per share and the dividend up 6.1%. Net tangible assets per share improved by 2.0% to 925p, helped by the stabilisation of yields and "impressive estimated rental value growth of 3.1%", the broker said.
Meanwhile, Segro's new joint venture with Pure Data Centres to develop a £1bn 56MW data centre in London reflects the company's commitment to "one of the biggest development programmes in the sector with significant potential for value creation", Shore Capital said.
"Some £62m of potential new rent is deliverable from the current pipeline of on-site and near-term developments while a further potential £502m could also be delivered from the future pipeline and current landbank options giving significant upside," the broker said. "The progressive capture of rental reversion, vacancy and run-off of rent-free periods provides attractive upside in the rent roll in due course, potentially adding a further £152m. Collectively, when combined with the rent available from current/future development, this presents an attractive opportunity for a material uplift in total contracted rent over the medium-term."
The stock trades at 0.82 times NTA on Shore Capital's FY26 forecasts, offering "strong potential for recovery and outperformance".
UBS upgraded its stance on wealth manager St James's Place on Friday to 'buy' from 'neutral' on valuation grounds following the recent selloff, and citing earnings support.
However, the Swiss bank also cut its price target on the stock to 1,465p from 1,565p.
UBS stated that St James's Place was the cheapest UK asset gatherer, with more than 20% earnings growth.
"Incorporating some AI-related disruption still gives circa 15% upside," UBS said, adding that there were "capital return surprises ahead".
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