Arctic ups Castellum, sees limited downside to book values

Castellum AB

04/03/2024 09:03

** Arctic Securities raises Castellum  CAST.ST  to "buy"
from "hold", saying that despite a "disappointing" Q4 with large
property write-downs the Swedish real estate company faces
limited downside to book values 
    ** The brokerage points out a 4.4% negative change in
property values QoQ and guidance of a tougher rental market, but
says the company is in a position where the downside is limited
    ** "The real value adjustment of some 30% since peak appears
to be close to enough and we believe dividends will return in
2025," the brokerage says 
    ** The broker retains a target price of SEK 150, and says
that as the Castellum share has recently traded down it lifts
its recommendation to "buy"
    ** Out of 14 analysts covering Castellum, seven rate the
stock "strong buy" or "buy", four rate it "hold", and three
"sell"

 (Reporting by Greta Rosen Fondahn)
 ((Greta.RosenFondahn@thomsonreuters.com))