UBS gave a knock to shares in Savills PLC (LON:SVS) on Monday, downgrading its rating for the estate agency to ‘neutral’ from ‘buy’ following a good run by the stock.

The Swiss bank hiked its price target (PT) for the FTSE 250-listed stock to 1,230p, up from 1.075p previously, with the shares currently trading at 1,222p, down 1.8% on Friday’s close.

READ: Savills trumpets “excellent” UK and US performance

In a note to clients, the Swiss bank’s analysts pointed out that Savills has returned almost 50% since its September lows on and improved outlook and the fading of tail risks following the UK general election.

They noted that the stock has re-rated to 16 times, which is in line with its 10 year peak, and now a 3 point premium against its peer group average versus its long term average 2 point discount.

The analysts said: “While we see the rerating as justified – we anticipate transactional activity to pick up in its core UK market this year and upgrade our PT by 14% – we downgrade to Neutral on valuation seeing this improved outlook reflected in shares and a balanced risk/reward ahead.”