SFL: Invest Securities downgrades stock

(CercleFinance.com) - Invest Securities has downgraded SFL (Société Foncière Lyonnaise) shares from 'neutral' to 'sell', reducing its target price for them from E59 to E55, believing that the sharp adjustment in NAV NTA per share should continue through to the end of 2024.


While acknowledging that operating data for 2023 is very good, as evidenced by strong organic rental growth (+8.5%), the broker also notes a sharp rise in financial expenses.

Even though SFL is one of the few real estate companies to offer excellent guarantees in revenue growth, the share's valuation now seems too high in the broker's opinion. However, it says that distribution capacity is not threatened.


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