First Berlin – publity AG Research Update (03/12/2019)

First Berlin Equity Research has published a research update on publity AG (ISIN: DE0006972508). Analyst Ellis Acklin upgraded the stock to BUY and increased the price target from EUR 44.00 to EUR 55.00.

H2 headlines were focused on the ramp-up of publity's landlord operations, which now run through PREOS Real Estate AG. publity now holds a 93% stake in the commercial landlord. PREOS kicked off an aggressive growth strategy this year and is on track to control >€0.7bn in German office properties by YE19. Plus, publity recently announced a significant boost in AuM (assets under management), which are expected to reach €7bn by YE20 (now: €5.5bn). We have adjusted our forecasts to reflect the expansion of landlord operations and the increase in AuM fees. Our price target moves to €55 (old: €44), and we upgrade the stock to Buy (old: Add).