First Berlin – GRAND CITY Properties S.A. Research Update (07/09/2017)

First Berlin Equity Research has published a research update on GRAND CITY Properties S.A. (ISIN: LU0775917882). Analyst Ellis Acklin reiterated his BUY rating and maintained his EUR 26.00 price target.

Abstract
Effective 18 September, Grand City Properties (GCP) will enter Germany's MDAX index as part of the reshuffling of the DAX family of indices. The step up into the mid cap index results from GCP's high market capitalisation, strong share liquidity, and the June uplisting of its shares into the Prime Standard. The jump also comes directly on the heels of the June adoption into the SDAX for small caps. We expect this to further boost investor confidence. In our view, the current 21% discount to our projected 2017E NAVPS (€23) is excessive considering the solid growth prospects as highlighted in our 22 August update. Our rating is Buy with a €26 price target.