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 28.00 to EUR 24.50.

Abstract
First quarter reporting was close to FBe and has Grand City tracking towards confirmed guidance. However, property investors continue to shrug at steady earnings results and widening discounts to NAV. We think the recent sector sell-off and in the GCP stock (-22% YTD) has opened an opportunity to capture rising earnings yields. With NAV valuations presently deemphasised by investors, we now value GCP with a discounted dividend model, which also factors a higher risk-free rate to reflect rising Bund yields. The increased cost of equity results in a €24.5 target price (old: €28.0). We remain Buy-rated on Grand City.