Atenor's rights issue to shore up balance sheet, KBC resumes with 'accumulate'

Atenor SA

11/12/2023 09:33

** KBC resumes coverage of Atenor  ATEO.BR  with an
"accumulate" rating, saying the real estate group raised more
cash in its latest rights issue than estimated, shoring up the
balance sheet and avoiding distressed selling of assets at a
loss
    ** "We  appreciate the transparent process that led the
group into a stronger financial position. The management can now
focus again on monetizing the pipeline," the broker says
    ** KBC notes the total amount of 181.6 million euros will
significantly strengthen the balance sheet and estimates that
the debt will decrease from 71.7% to 62.8%
    ** It also expects the group to be profitable in 2024, after
writing down three large projects
    ** "Main catalysts for share price performance are
profitable asset sales that further reduce the debt % and show
that Atenor can return to a sustainable profit margin that will
allow for dividend payments in the future," KBC adds







 (Reporting by Diana Mandiá)
 ((diana.mandiaalvarez@thomsonreuters.com))