Unibail-Rodamco: Invest Securities cuts target price
(CercleFinance.com) - Invest Securities believes that the group's plan to strengthen its balance sheet by 9 billion euros, and the capital increase of 3.
5 billion euros (issue price unknown) should be highly destructive of value for current shareholders (exceeding -30% on our 2019 and 2023 recurring results on the basis of an issue price of 37 euros, subject to revision).
The transaction comes at a time of heightened uncertainty about tenant's sales post-Covid and ongoing rent negotiations, while this uncertainty will diminish over the coming months, Invest Securities says.
The broker said that it has only slightly cut its target price, which already included this possibility (to 70 euros vs. 75 euros). The broker maintains its buy rating on the stock.
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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.
5 billion euros (issue price unknown) should be highly destructive of value for current shareholders (exceeding -30% on our 2019 and 2023 recurring results on the basis of an issue price of 37 euros, subject to revision).
The transaction comes at a time of heightened uncertainty about tenant's sales post-Covid and ongoing rent negotiations, while this uncertainty will diminish over the coming months, Invest Securities says.
The broker said that it has only slightly cut its target price, which already included this possibility (to 70 euros vs. 75 euros). The broker maintains its buy rating on the stock.
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.