First Berlin Equity Research has published a research update on CR Capital AG (ISIN: DE000A2GS625). Analyst Ellis Acklin reiterated his BUY rating and maintained his EUR 53.00 price target.
Six month reporting featured another strong performance from the portfolio and has CR Capital tracking towards our full year targets. The company recorded close to €67m in net income, which pushed NAVPS up to €75.5 at the end of H1 (YE21: €59.4). The Terrabau holding spurred earnings, thanks to good progress with its pipeline. Although home construction operations have remained resilient in the economic downturn, the recent weakness in CRC shares reflects sector sentiment that has fallen off a cliff in the wake of jumbo interest rate hikes. We see good value in CRC shares, but investors need to be patient with no clear catalysts on the horizon beyond evolution of the macro environment. Our rating remains Buy with a €53 target price.