Aroundtown SA Receives Buy Rating and Target Price Boost

First Berlin Equity Research GmbH has released an update on Aroundtown SA, maintaining its "Buy" recommendation while raising the target price from EUR 4.00 to EUR 4.40. The Q2 results for Aroundtown were stable compared to the previous year, with key figures aligning closely with predictions. The company showed robust performance, achieving a like-for-like rental growth of 3.0% across all asset classes.

The Funds From Operations (FFO 1) amounted to €74 million, slightly below the prior year, supported by a stable adjusted EBITDA that compensated for increased perpetual note payments. Positive revaluations contributed to a 3% quarter-on-quarter increase in EPRA net tangible assets per share (NTAPS) to €7.80.

Aroundtown also announced plans to resume external growth and enter the data center business. The management confirmed a guidance range for FFO 1 between €280 million and €310 million. The updated target price reflects recent developments, underscoring a 30% upside potential.