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 4.00 price target.

Abstract
Standard & Poor’s (S&P) has downgraded Aroundtown’s credit rating one notch to BBB with a stable outlook (old: BBB+ negative outlook), despite significant progress made by AT in fortifying its capital structure. The ratings agency now thinks that a still sagging German economy will hamper AT’s 2025 disposal activity and its ability to hit S&P’s leverage requirements. Specifically, S&P prescribed a 50% debt-to-cap ratio for the landlord’s BBB+ rating. The YE24 metric stood at 52.1% but had dropped from 55.5% since March 2024. AT’s bonds barely reacted to the news, suggesting that the re-rating was priced in. Plus, we see a silver lining in terms of flexibility based on the reset criteria. We maintain our Buy rating and €4 TP (54% upside).