Investing.com — Kepler Cheuvreux upgraded UK warehouse landlord Segro Plc () to “buy” from “hold” and lifted its price target by nearly 30%, saying the stock remains undervalued even if takeover interest from Prologis does not materialise.

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The brokerage raised its price target to 1,010 pence from 780 pence, arguing that greater management disclosure has strengthened confidence in SEGRO’s long-term earnings potential and intrinsic value.

Kepler Cheuvreux said Prologis’ potential interest in SEGRO has prompted investors to focus on what a buyer might be willing to pay rather than the company’s standalone value. It argued that enhanced disclosures allow it to extend forecasts through 2035, supporting a higher valuation based on both cash flow and net asset value.

The brokerage said it expects SEGRO to deliver earnings per share of around 50 pence by 2030 and 56.5 pence by 2035, representing a compound annual growth rate of roughly 6% from 2025. While it acknowledged a deal with Prologis may never emerge, it said the shares should gradually outperform as investors increasingly recognize the company’s intrinsic value.

SEGRO shares were little changed at around 884 pence in London trading, broadly in line with the FTSE 100 Index.

Kepler Cheuvreux added that it would not recommend accepting any takeover offer below 1,010 pence, arguing the market debate should shift from the price a bidder may pay to the underlying value of the business.