Merrill Lynch has upgraded net asset value estimates for the leading property companies by an average of 3% for each of the next two years.
British Land rose 2.6% to 743p, also boosted by talk that incoming chief executive Stephen Hester had been out and about in the Square Mile outlining his plans for the company.
City traders claim Hester has been meeting the biggest shareholders promising to review all options.
Analysts think chairman John Ritblat will limit his room for manoeuvre.
Merrill Lynch believes the company could emerge with good news on lettings at its Plantation Place development in the City of London. It raised its price target for the stock from 790p to 855p.
Liberty International rose 1.5% to 863p and Hammerson 1.7% to 736p. Merrill Lynch named Liberty as one of its key buys in the sector but Cazenove downgraded its rating on the stock from inline to underperform.
References: Financial Times 27/10/04 page 47 (FT Markets – London), The Guardian 27/10/04 page 22 (Market forces), The Times (Compact) 27/10/04 page 54 (Larger Capitalisation Shares), page 55 (The Day’s Biggest M
