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 8.30 to EUR 7.40.

Abstract
First quarter reporting was close to FBe and has Aroundtown tracking towards confirmed guidance. However, property investors continue to shrug at steady earnings results and widening discounts to NAV. AT shares have shed some 17% YTD although operational performance has remained steady in the face of rising interest rates and inflation mixed with recessionary fears and lingering pandemic effects. Although we expect the stock to remain volatile over the near term, there are ample signs that operations will be able to ride out the current storm. With NAV valuations presently deemphasised by investors, we now value AT with a discounted dividend model, which also factors in a higher risk-free rate to reflect rising Bund yields. The increased cost of equity results in a €7.4 target price (old: €8.3), and we remain Buy-rated on Aroundtown.