LONDON (ShareCast) - Gloomy broker comment hit Liberty International for the second day in row as Citigroup lowered its recommendation on the real estate giant to ‘sell’ from ‘hold’ and cut its target price to 800p from 1,100p.

The downgrade comes the day after HSBC lowered its target price on the Covent Garden shopping centre owner to 565p from 680p.

Citi said property stocks are too expensive given that initial yields range from only 3.6% to 5.7%, when they should be around 1.7% to 2% higher on the basis of current share prices.

The broker recommended investors in real estate avoid exposure to UK retail.

It also cut its price target on British Land to 800p from 900p on Hammerson to 1,000p from 1,300p and on Land Securities to 1,450p from 1,600p, keeping its ‘neutral’ ratings on the stocks.

However, Citi raised its rating on the Europe-wide real estate group Segro to ‘buy’ from ‘hold’.

Citi keeps its ‘buy’ recommendations on Brixton, Derwent and Great Portland Estates and cuts its target prices on the respective stocks to 310p from 430p, to 1,600p from 1,300p and to 420p from 450p.

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