Workspace Group’s shares have fallen almost 50% this year, although the firm’s shares were upgraded on Friday by JPMorgan.

The stock closed 1.46% higher on the day.

JPMorgan analyst Neil Green upgraded Workspace Group to Overweight from Neutral, keeping a 650p price target on the stock and also adding it to the firm’s Analyst Focus List.

Going into 2023, Green has a more constructive outlook on European real estate equities, and he believes Workspace’s valuation discount is “too wide to ignore.”

The real estate investment trust currently has four Buy ratings from analysts, with an average price target of 582.50p, according to TipRanks. The average price target represents a potential 40% upside.

Workspace was boosted in the first half of its financial year as employees continued to return to offices…

The group posted profits of £35.8 million in the six months ending September, against just £3.4 million in the previous year period. Higher prices and occupancy levels helped drive profits for the firm.

Workspace shares were also recently upgraded by Barclays. Analyst Paul May double-upgraded the group to Overweight from Underweight, keeping a 520p price target on the stock, telling investors in a note that he sees more opportunities among London office landlords given the “depressed” valuations across the sector.

According to May, the risks for Workspace are now priced in, and the company offers a strong income outlook.