Klepierre: Goldman Sachs downgrades to 'sell'
(CercleFinance.com) - Following recent share price moves, Goldman Sachs expects further downside potential on certain real estate shares.
"Our price targets fall 22% on average. We downgrade Unibail and Klepierre to Sell (from Neutral) and remain Sell on Citycon, Eurocommercial and Mercialys. Hammerson is rated Neutral," Goldman Sachs says.
Like other commercial property groups, Klépierre is expected to suffer from the likely decline in market rents. "We believe COVID-19 will accelerate the transition to online, with a significant impact on physical retail (i.e. lower sales densities, store closures and insolvencies)".
"We believe dividend capacity will remain impaired medium term as a result, and expect dividends to be close to the minimum legally required," the broker 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.
"Our price targets fall 22% on average. We downgrade Unibail and Klepierre to Sell (from Neutral) and remain Sell on Citycon, Eurocommercial and Mercialys. Hammerson is rated Neutral," Goldman Sachs says.
Like other commercial property groups, Klépierre is expected to suffer from the likely decline in market rents. "We believe COVID-19 will accelerate the transition to online, with a significant impact on physical retail (i.e. lower sales densities, store closures and insolvencies)".
"We believe dividend capacity will remain impaired medium term as a result, and expect dividends to be close to the minimum legally required," the broker adds
Copyright (c) 2020 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.