KBC resumes Aedifica at 'buy' after discounted rights issue

Aedifica NV

05/07/2023 10:38

** KBC resumes coverage of Belgian healthcare real estate
investment company Aedifica  AOO.BR  with a "buy" rating and a
TP of 70 euros, following a discounted rights issue at 52
euros/share
    ** "We don't expect Aedifica to immediately employ the cash
it has raised," the broker says
    ** The cash buffer should help the company to control
debt-to-assets ratio in the short term, while offering
optionality in the medium term, KBC adds
    ** The broker lowers capex estimates for the next three
years, and assumes Aedifica will keep its debt-to-assets ratio
in the lower 40% region
    ** However, due to the "significant" dilution, KBC lowers
EPRA earnings per share estimates to 4.77 euros from 5.01 euros
for 2023 and to 4.53 euros from 5.14 euros for 2024
    ** Separately, Berenberg cuts its TP for Aedifica to 87
euros from 95 euros, while Citi lowers TP to 66.4 euros from
156.12 euros
    ** This compares to Tuesday's closing price of 61.30 euros
    ** Out of 12 analysts that cover Aedifica, nine rate the
stock "strong buy" or "buy", ​two "hold" and one "sell"

 (Reporting by Gaëlle Sheehan)
 ((gaelle.sheehan@thomsonreuters.com; +48 58 7785110;))