First Berlin Equity Research has published a research update on Grand City Properties S.A. (ISIN: LU0775917882). Analyst Ellis Acklin reiterated his BUY rating and decreased the price target from EUR 19.00 to EUR 16.80.
Nine month reporting was close to FBe and has Grand City 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, Grand City’s top brass were confident in the landlord’s ability to absorb the current market disruption without compromising the capital structure, even if earnings (FFO 1) take a hit over the near term. We have recalibrated our forecasts that now reflect the more cautious market outlook. This points to a target price of €16.8 (old: €19). Our rating remains Buy.