Goldman Sachs has downgraded its recommendations on Derwent London (LON:DLN) and Land Securities (LON:LAND) to neutral from buy, which it says is mostly based on their recent share price performance.
In terms of Derwent, the City heavyweight commented: "London CRE data remain strong (e.g. CBRE reports record London office 1Q investment volumes in 2017), but the ultimate impact from Brexit remains very uncertain. With Derwent's shares up 15% over the last three months, its (strong) micro and share price multiples no longer trump the macro risks in the same way, in our view."
The broker also highlighted that there is only 8% upside to its unchanged 3,250p 12-month price target.
As for Land Securities, analysts said: "Following share price outperformance, Land Securities now trades at a 17% discount to our forecast for 12-month forward rolling average NAV, in line with its historical average (18% since October 1998). With 11% upside to our unchanged 1,238p 12-month price target, we downgrade our rating to Neutral from Buy."
At market close:
(LON:DLN) Derwent London share price was -11p at 2983p
(LON:LAND) Land Securities Group Plc share price was -12p at 1113p