First Berlin Equity Research has published a research update on Aroundtown SA (ISIN: LU1673108939). Analyst Ellis Acklin reiterated his BUY rating and increased the price target from EUR 4.00 to EUR 4.40.

Abstract
Q2 results were stable YoY and all headline figures were within a whisker of FBe. Reporting featured another good operational performance with all asset classes contributing to the solid overall LFL rental growth (+3.0%). Bottom line FFO 1 was just off the prior year number at €74m, thanks to the stable AEBITDA result that helped absorb higher perpetual note attributions. Revaluations remained a positive, helping nudge EPRA NTAPS 3% higher QoQ to €7.8. The company also unveiled plans to restart external growth as well as a blueprint for entering the data centre business. Management confirmed guidance calling for FFO 1 of €280m to €310m (FBe: €304m). Our TP is now €4.4 (old: €4.0) after adjusting for Q2 developments. We reiterate our Buy rating (upside: 30%).