First Berlin Equity Research has published a research update on Aroundtown SA (ISIN: LU1673108939). Analyst Ellis Acklin reiterated his BUY rating and decreased the price target from EUR 5.10 to EUR 4.60.
Nine month reporting was close to FBe and has Aroundtown on pace to achieve confirmed 2022 guidance. Management sounded a cautious tone on the earnings call with the impact of macro headwinds becoming more visible. At the same time, Aroundtown’s top brass were confident in the landlord’s ability to absorb the current market disruption, even though earnings (FFO 1) will take a hit with the announced plan not to call the €369m in perpetual notes callable in January 2023. Although we had already factored this reset into our model, updated forecasts now consider the more cautious market outlook for LFL growth. This points to a target price of €4.6 (old: €5.1). Our rating remains Buy.