First Berlin Reiterates BUY Rating for Aroundtown SA, Ups Price Target

First Berlin Equity Research GmbH has released an update on Aroundtown SA, affirming a BUY rating. Analyst Ellis Acklin has raised the target price from €3.50 to €3.60. The update highlights signs of a property cycle bottoming out, evidenced by initial rate cuts in the EU and anticipated moves by the US Federal Reserve in September. Additionally, the negative trend in property valuations is slowing, and capital market access is improving.

Aroundtown SA and GCP have successfully issued a combined €1.15 billion in unsecured debt after a two-year pause. The revamped balance sheet is expected to gain favor among investors. The company has increased its 2024 FFO 1 forecast, driven by a solid quarter with 2.9% LFL rental growth and lower-than-expected financing expenses.