Assura Plc (LON:AGR) is unlikely to be a beneficiary as Britain ‘re-opens trade’, according to JP Morgan Cazenove, which has downgraded the healthcare property business to ‘neutral’ from ‘overweight’.
Analyst Vanessa Guy says a disconnect between share price performance and the company’s solid fundamentals point towards an increasing market preference for reflation and/or reopening trades.
“Although we continue to view Assura as a long-term UK safe haven play we believe the market is already looking post COVID-19, which will be unhelpful for Assura’s share price in the medium term,” the analyst said.
“We see better ways of playing the UK sector, such as through Offices and UK residential.
“Should market conditions turn risk averse we would again look to the defensive/low-risk characteristics of Assura’s portfolio.”
JP Morgan Cazenove has a price target of 83p (current price: 76p).