Jefferies bullish on European real estate, lifts VGP and Carmila to 'buy'

Carmila SA

26/05/2026 07:03

** Jefferies upgrades VGP  VGP1.BR and Carmila CARM.PA to "buy" from "hold", saying historically cheap prices offer an attractive entry point in European real estate despite a challenging backdrop

** The broker calculates the sector trades at 14.3 times 2026 estimated Funds From Operations (FFO) versus a historical average of 17.4 times, adding it believes markets are wrong in pricing further stress

** "While the 2026 environment resembles 2022 in terms of interest rate pressure, the fundamentals differ significantly. With balance sheets repaired, funding markets open and earnings stabilizing, we believe the sector offers a compelling risk/reward, with limited downside," Jefferies says

** VGP and Carmilla are its "key conviction ideas" with the former's capital increase reopening growth avenues, while the latter offers a "defensive profile with low execution risk" amidst continued macro obstacles

** Broker also highlights TP increases in several "buy"-rated names such as Argan ARGAN.PA (up 34% to 81 euros), Gecina GFCP.PA (up 53% to 110 euros), Xior XIOR.BR  (up 21% to 34 euros), and Shurgard SHUR.BR (up 52% to 36 euros)

** Jefferies cuts Grand City GYC.DE to "hold" from "buy", citing a 19% drop in free float to 18.5% weakening stock liquidity, even if fundamentals remain resilient

 (Reporting by Jakob Van Calster)

 ((jakob.vancalster@thomsonreuters.com))