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 3.50 price target.

Abstract
AT has remained on a steady path in a headwind year with Q2 extending the good operational performance recorded in the January-to-March period. Reporting was close to FBe, and AT brass bumped up FY23 FFO 1 guidance by ~3% to a range of €310m to €340m on the good operating results. AT1 stock has rebounded some 68% from extreme all-time lows set in May, and investor ennui is starting to fade with growing belief that we are approaching peak rates. Liability management measures have given the landlord a three-year runway to tackle potentially trickier financing decisions, and covenant headroom remains good, thanks to disposals and bond buybacks executed YTD. We remain Buy-rated on AT1 with a €3.5 TP.