Castellum rating cut to 'underweight' to reflect weakening performance
10/05/2024 11:12
** Barclays cuts rating on Swedish real estate group
Castellum's CAST.ST shares to "underweight" from "overweight"
** Brokerage notes company's like-for-like rent growth of
2.9% in Q1 was "well below" inflationary increases and free cash
flow (FCF) generation is limited
** Barclays believes company remains over-leveraged and sees
headwinds to Castellum's asset values, which it says threaten to
weigh further on leverage position
** While brokerage says company's shares have outperformed
since last year's equity raise, it expects increasing
operational headwinds and sees limited upside potential over the
coming year
** It views company's 2024 EPS yield estimate of 6.7% and
FCF yield estimate of close to 4.4% to be unattractive
** Barclays cuts PT on Castellum's shares to 110 Swedish
crowns from 135 crowns
** Brokerage reiterates preference for peer Catena
CATE.ST , keeping it at "overweight"
(Reporting by Elviira Luoma)
((elviira.luoma@thomsonreuters.com))