Analysts at HSBC have downgraded their investment rating on Landsec (LON:LAND) to 'hold' from 'buy', believing the company is lacking impetus.
The bank highlighted that the "steep downward trajectory in returns and unpredictable UK property market manifests itself in entrenched equity discount", adding "despite the UK's travails, property values remain resilient although they lack any meaningfully positive impetus".
HSBC cut its target price to 1,081 pence a share (from 1,210 pence), implying a rather modest 8.3% potential upside.
Meanwhile, Liberum Capital maintained its 'hold' rating and 1,050 pence target.
The broker commented: "We believe the current share price values Landsec's property assets at a mid-cycle yield.
"Relative to the high valuations on asset classes elsewhere this seems attractive. However, with Landsec's end-markets only just softening and a lack of absolute mean reversion on offer we continue to hold out for more."
At 3:07pm: (LON:LAND) Land Securities Group Plc share price was +9.5p at 1005.5p