Pareto initiates Swedish landlord Corem with 'buy' on low valuation
14/10/2024 08:45
** Pareto initiates Corem Property COREa.ST with a "buy"
rating and a PT of SEK 10.40, saying the Swedish commercial real
estate firm is undervalued at its current price of SEK 8.50
** The broker says the recent 19% sell-off, based on rumours
in local media that Ericsson ERICb.ST would leave its premises
in Kista, was surprising and severely overdone
** Ericsson declined to comment on market rumours
** Pareto commends Corem's strategic bond issuances and
financial fortification efforts, such as reductions in dividend
payouts, issuing new equity and selling properties
** It also notes positive net letting which indicates strong
demand and well-managed property portfolio
** "Corem has positioned itself favourably for the future,
which is not reflected in the share price," Pareto says
** It recommends investing in Corem and divesting potential
holdings in rival Castellum CAST.ST
** Out of three analysts covering Corem, one rates the stock
"buy" and two "hold"
(Reporting by Anna Chaberska)
((Anna.chaberska@thomsonreuters.com))