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 4.20.

Abstract
Nine month reporting featured a good operating performance but also a few positive surprises. Results were led by 3% LFL rental growth that now has AT tracking towards the upper end of its FFO 1 guide (€290m to €320m). Management’s tenor has brightened significantly since YE23, thanks to (1) a revamped balance sheet; (2) encouraging trends from all asset classes, including upside from the hotel portfolio; and (3) further signs that the downcycle is nearing an end. The landlord has also launched an app to address flexible workplace trends and is jumping into the PropTech arena with two VC partners to launch an accelerator. AT won’t guide on 2025 until YE24 reporting, but building blocks are in place for a good year?particularly if the transaction market picks up. We remain Buy-rated on AT with a €4.2 TP (old: €4.0).