Broker snap: Credit Suisse downgrades British Land to neutral

LONDON (ShareCast) - Shares of British Land (LSE: BLND.L - news) were suffering on Tuesday afternoon after Credit Suisse (NYSEArca: CSMA - news) downgraded its rating on the property owner from outperform to neutral, saying that it expects "the shares to lack positive momentum for the next few quarters". Credit Suisse said: "the early stage onset of capital value depreciation, albeit well telegraphed, is likely to further deter generalist money entering the sector despite an already implied 9% fall in the portfolio's capital value on our estimates (a quantum we question will be exceeded in 2012)." This, along with the issue of specialist property funds continuing to be underweight in Europe (Chicago Options: ^REURUSD - news) , could continue to weigh on the stock near-term despite a "reasonably attractive valuation", the broker said. In fact, analysts say that the stock is already discounting an implied fall in capital values of around 9% (on its own estimates): "British Land is not expensive". Nevertheless, the broker has made slight downward revisions to its current year (fiscal year ending March 31st 2012) and next year forecasts for net asset value per share (NAVPS) and has consequently cut its target price for the stock from 560p to 532p. By 14:28, shares were trading down 1.19% at 489.3p. BC