UBS updates Intu Properties to 'buy' off better prospects

LONDON (ShareCast) - (ShareCast News) - UBS (NYSEArca: FBGX - news) upgraded Intu Properties (Other OTC: CCRGF - news) to 'buy' from 'neutral' and said the mall owner had better operational prospects. Analyst Charles Boissier said in a note it had upped the stock's price target to 370p from 380p.

Boissier said now was the time to buy the stock as it was at a discount to spot net asset value and a 27% cheaper than the rest of the sector.

"More fundamentally, Intu (Swiss: OXIGTU.SW - news) owns a portfolio of prime shopping centres that is highly difficult to replicate, in particular nine of the top 20 UK shopping centres and two of the top five Spanish shopping centres (ex-Madrid / Barcelona)," Boissier said in a note.

UBS said Intu had better operational prospects, as new supply was virtually non-existent.

Analysts also said the company would benefit from an increased appetite for UK commercial property, and concerns about funding were overdone as it had cash and available facilities of £500m.

Shares (Berlin: DI6.BE - news) in Intu had lifted by 0.12% to 336.20p at 1138 BST.