First Berlin – Aroundtown SA Research Update (31/03/2021)

First Berlin Equity Research has published a research update on Aroundtown SA (ISIN: LU1673108939). Analyst Ellis Acklin reiterated his BUY rating and maintained his EUR 8.60 price target.

Aroundtown (AT) has published full year results and announced another share buy-back program after executing €1bn in buy-backs in 2020. Headline figures were in line with FBe and 2020 guidance. FFOPS 1 (after perpetuals) of €0.27 was below the prior year result (€0.38) due to the covid-19 provision and high disposal activity. Now the company wants to put its strong cash position (YE20: €2.7bn) to work and purchase up to €500m in stock this year. New 2021 guidance calls for a 7.5% to 15% Y/Y increase in FFOPS 1 (covid-19-adjusted), and AT will continue its opportunistic acquisition / disposal approach. We maintain our Buy rating and €8.6 price target.