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 4.10 to EUR 3.80.

Abstract
Six month reporting showed steady operational performance but also a company still caught between an improving operational platform and a stubborn financing drag. LFL rental growth reached 2.7%, valuations held firm, plus recent refinancing and liability-management measures have extended AT’s maturity runway through 2028. Meanwhile, the higher GCP stake, winding-down share buybacks and a €55m rental uplift pipeline from conversions and repositionings provide tangible earnings drivers. In our view, the rub is timing. These growth levers will take time to override higher refinancing costs, meaning FFOPS expansion is more of a mid-term story. We nevertheless see AT entering this stretch on a much sturdier footing with refinancing risk greatly reduced and internal growth increasingly visible. Our updated forecasts and DCF model point to fair value per share of €3.8 (old: 4.1) equal to upside of 90%. We maintain our Buy rating.