SEGRO (OTCMKTS:SEGXF) Hits New 12-Month High - Should You Buy?

Key Points

• SEGRO shares hit a new 52-week high, trading as high as $12.80 after a roughly 5% move higher, reflecting strong investor interest in the stock.
• Takeover hopes are driving the rally after SEGRO’s board said it would recommend Prologis’s revised bid, which values the company at about £14 billion ($18.7 billion) and includes a partial cash alternative.
• Prologis also agreed to seek a UK listing, a concession that could make the deal more appealing to SEGRO shareholders and reduce concerns about execution.

SEGRO (OTCMKTS:SEGXF - Get Free Report)'s share price hit a new 52-week high during trading on Thursday . The company traded as high as $12.80 and last traded at $12.25, with a volume of 407 shares changing hands. The stock had previously closed at $11.4660.

Key Stories Impacting SEGRO

Here are the key news stories impacting SEGRO this week:

• Positive Sentiment: SEGRO’s board said it would recommend Prologis’s revised takeover offer to shareholders, boosting expectations that a deal may be completed. Segro Shares Rise After Board Yields to Prologis's Final $18.7 Billion Takeover Bid
• Positive Sentiment: Prologis raised its offer to about £14 billion ($18.7 billion), improving the terms by 9.5% and adding a partial cash alternative of up to £3.5 billion, which likely increased shareholder appeal. Prologis tables $18.8 billion takeover proposal for UK's Segro
• Positive Sentiment: Prologis also said it would seek a UK listing, a concession that may make the deal more attractive to SEGRO investors and reduce execution concerns. Segro jumps as Prologis raises 'best and final' bid to £14bn, seeking more time for talks
• Neutral Sentiment: A SEGRO shareholder had previously urged the board to engage with Prologis’s earlier proposal, adding pressure for negotiations but not changing the fundamentals by itself. Segro shareholder urges engagement with Prologis over $18.1 billion proposal

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on SEGXF shares. BNP Paribas Exane assumed coverage on shares of SEGRO in a research note on Wednesday, July 1st. They set a "neutral" rating for the company. Kepler Capital Markets raised shares of SEGRO from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 17th. Jefferies Financial Group lowered shares of SEGRO from a "buy" rating to a "hold" rating in a research note on Thursday, July 9th. Finally, The Goldman Sachs Group raised shares of SEGRO from a "buy" rating to a "buy" rating in a report on Monday, June 1st. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold".

SEGRO Trading Up 5.0%

The company has a quick ratio of 0.50, a current ratio of 0.50 and a debt-to-equity ratio of 0.36. The firm has a 50 day simple moving average of $10.59 and a two-hundred day simple moving average of $10.13.

About SEGRO

SEGRO PLC OTCMKTS: SEGXF is a leading real estate investment trust specializing in the ownership, development and management of modern warehousing, light industrial and urban logistics properties. As a FTSE 100 company, SEGRO’s portfolio encompasses a broad range of distribution centres, last-mile facilities and multi-let industrial estates designed to support high-growth sectors such as e-commerce, retail and manufacturing.

The company traces its origins to the Slough Trading Company, established in 1920, and underwent a major rebranding in 2009 to become SEGRO, reflecting its pan-European ambitions.

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