Handelsbanken views Castellum as financially prepared to weather headwinds, ups to 'buy'
22/05/2024 11:55
** Handelsbanken raises short-term recommendation on
Castellum CAST.ST to "buy" from "hold," seeing the Swedish
property company as well prepared to face headwinds and invest
in existing assets
** Although brokers' base case for the share remains
unchanged, in its view Castellum's almost 20% underperformance
year-to-date makes the stock attractive for investors wanting a
broader exposure to Nordic real estate
** It says that a firmer financial position of Entra
ENTRA.OL , in which Castellum holds a 1/3 ownership, rights
issue carried out in 2023, and disposals, result in the Swedish
landlord being financially prepared to weather high rates,
invest and engage in growth-accretive project developments
** Handelsbanken is of opinion that Castellum was "punished
too harshly" for soft Q1, and believes the company will continue
taking necessary steps to regain investors trust
** The brokerage keeps its long-term three years
recommendation on Castellum at "Market Perform"
** The stock rise 3% at 1020 GTM, making it one of best
performers on STOXX 600 .STOXX index
(Reporting by Agnieszka Oleńska)
((Agnieszka.Olenska@thomsonreuters.com;))