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 3.50 to EUR 3.60.

Abstract
There are clear signposts pointing to a bottoming of the property cycle: (1) initial rate cuts in the EU with the Fed widely expected to follow suit in September; (2) decelerating negative property valuations; and (3) improving access to the capital markets. On the latter point AT and GCP each tapped the bond markets this summer after a two year hiatus issuing a combined €1.15bn in unsecured debt. The landlord’s revamped balance sheet should now pass muster with even jaded investors. AT-brass upped their 2024 FFO 1 guide on the back of another solid quarter that saw the landlord report 2.9% LFL rental growth, while financing expenses are also running lower than expected. We remain Buy-rated on AT with a €3.6 TP (old: €3.5).