Mercialys: Invest Securities raises target price
(CercleFinance.com) - Invest Securities confirms its buy recommendation on the share and raises its target price for it to E12.
9 (from E12.1) following the announcement of its H1 results and the confirmation of its targets.
The retail property group reported a 3% increase in recurring net income (RNR) per share for the first six months of the year, exceeding its annual target of at least 2%.
As expected, continued strong indexation (+4.4%) in H1 led to pressure on reversion (-0.2%), which remained contained in a context of a still very high occupancy rate of 95.6%, the broker says.
The property company continues to boast a solid balance sheet (LTV 39.4%) and a flexible pipeline (E432m, of which 4% is committed), allowing a resumption of investment. The finalization of the transfer of Casino banners augurs well for the operating performance of the shopping malls, Invest Securities believes.
Against this backdrop, the real estate company has unsurprisingly reiterated its highly credible 2024 guidance (RNR/share at least +2%, payout ratio 75% to 95%). Taking into account the stabilization of asset values and better-than-expected refinancing costs, we are revising our target, it adds.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
9 (from E12.1) following the announcement of its H1 results and the confirmation of its targets.
The retail property group reported a 3% increase in recurring net income (RNR) per share for the first six months of the year, exceeding its annual target of at least 2%.
As expected, continued strong indexation (+4.4%) in H1 led to pressure on reversion (-0.2%), which remained contained in a context of a still very high occupancy rate of 95.6%, the broker says.
The property company continues to boast a solid balance sheet (LTV 39.4%) and a flexible pipeline (E432m, of which 4% is committed), allowing a resumption of investment. The finalization of the transfer of Casino banners augurs well for the operating performance of the shopping malls, Invest Securities believes.
Against this backdrop, the real estate company has unsurprisingly reiterated its highly credible 2024 guidance (RNR/share at least +2%, payout ratio 75% to 95%). Taking into account the stabilization of asset values and better-than-expected refinancing costs, we are revising our target, it adds.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.