Icade: Morgan Stanley upgrades stock

(CercleFinance.com) - On Tuesday Morgan Stanley upgraded its rating on Icade shares from "equal weight" to "overweight", having increased its corresponding target price from 65 euros to 69 euros.


The conglomerate discount posted by the French real estate group is now very high levels, the broker says, a phenomenon that it attributes to an only partial control of its health division, which is growing strongly, while the property developer is the sole owner of its office business, which is heavily indebted.

The prospect of a flotation of its health subsidiary, which invests in private clinics in France, could, however, crystallise the value of the business and reduce this discount, it adds.

According to an even more favourable scenario, the stock's conglomerate discount could even disappear completely, Morgan argues, which could raise its share price to around 82 euros, representing 28% upside potential.


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