Storage group Big Yellow Group PLC (LSE:BYG) has been upgraded to a buy by the brokers at Citi, who see a new cyclical upside coming into view.
“Our confidence is building about the beginning of the next cycle and we expect valuation multiple expansion ahead of fundamental growth.
Citi has a price target of 1,525p with a ‘valuation corridor’ up to 1,700p indicating 'significant upside potential'.
“As real estate markets navigate the remaining macro-economic consequences of tightened monetary policy of slowing growth associated with curbing inflation, Big Yellow offers proven relatively defensive performance in the previous cyclical tough of 2008/09, EPS growth beyond an anticipated slowdown impact this year and continued asset value and NAV growth support."
Shares were flat at 1,242p on Friday.