'Poised for outperformance', JPM starts Aedifica at 'overweight'

Aedifica NV

19/07/2024 07:08

** JPM initiates coverage of Aedifica  AOO.BR  with an
"overweight" rating, says the Belgian healthcare real estate
company operates in a resilient sub-sector with stable and
predictable cash flows 
    ** It says healthcare real estate operators' occupancy rates
are well above 80% in Europe and rising year on year, despite
price increases
    ** "Ability to pass rent increases through to tenants
outperforms other sectors, ensuring a reliable flow of income,"
it says, adding that healthcare tenants are more reliable in
paying rent vs other sectors like retail 
    ** The broker also points to M&A and investments becoming
more feasible for the sector as debt costs start falling 
    ** "An improvement in M&A visibility may imply further
equity raises in medium term, which for right reasons should be
taken as an opportunity to re-engage" - JPM
    ** The broker sets PT of 70 euros, which is 15.5% above
Thursday's closing price of 60.60 euros
    ** Out of 17 analysts that cover Aedifica, 10 rate the stock
"strong buy" or "buy"​, six rate it "hold" one rates it "sell"
    


​
    

 (Reporting by Olivier Sorgho)
 ((Olivier.Sorgho@thomsonreuters.com))