Citi upgrades Carmila on improving environment, shares rise

Carmila SA

21/05/2024 10:08

** Citigroup revises its "deep recessionary view" on Carmila
 CARM.PA  and double upgrades the French real estate firm to
"buy" from "sell"
    ** Shares in Carmila rise 4.1%, on track for their best day
since March 8 if gains hold
    ** Citi says macroeconomics look increasingly supportive for
real estate stocks, and expects rate declines to stimulate
growth from 2025
    ** "We no longer estimate risk of deep recession decline in
rents and property values which leads to increase in NAV and EPS
estimates," it says
    ** It raises 2024-2027 NAV estimates by 27% on average,
mainly driven by a reversal of the previous estimated portfolio
value decline as rate headwinds subside
    ** Out of eight analysts that cover Carmila, five rate the
stock "strong buy" or "buy", ​two "hold" and one "strong sell"

 (Reporting by Olivier Cherfan)
 ((olivier.cherfan@thomsonreuters.com))