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 increased the price target from EUR 14.40 to EUR 15.10.
Abstract
We attended the EPRA 2024 Conference in Berlin to take the pulse of the property sector. Attendance was good, and surprisingly included several stakeholders from far flung corners of the globe. Compared to last year, the mood was much more upbeat with most participants optimistic that the worst of the downcycle is over. During the event we had a chance to meet with GCP brass and also get a first-hand look at some of Grand City’s local residential properties. The tour showcased their quality and locations, as well as the landlord’s strategy for repositioning underperforming assets to unlock embedded upside. The event left a good impression and reinforced our view that GCP will emerge a long-term winner as we progress through the cycle. We remain Buy-rated on GCP with a €15.1 TP (old: €14.4) after adjusting the risk free rate in our model to track German 10 year bonds.
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