MS cautious over European property sector, revises ratings
04/09/2023 08:24
** Morgan Stanley updates its views on European real estate,
saying "bond yield levels and the inverted curve are signalling
sustained caution and likely further weak sector performance"
** "Recent operational resilience is likely fading and price
discovery is overdue," the broker adds
** MS downgrades Cofinimmo COFB.BR to "equal-weight" from
"overweight" and cuts TP by nearly 17% to 75 euros, saying its
average financial leverage will likely lead to balance sheet
repairs in the medium term; shares up 0.8% at 0718 GMT
** It deems the British market out of favour and oversold,
cutting Land Securities LAND.L to "equal-weight" from
"overweight" and TP to 650 pence from 750 pence, but notes
risk-reward is compelling at current valuation; shares up 0.3%
at 0717 GMT
** It downgrades WDP WDPP.BR to "underweight" from
"equal-weight" and lowers TP to 21 euros from 26 euros, noting
the company has maintained a NAV premium with scarce stock;
shares down 2.1% at 0715 GMT
** MS upgrades Hammerson HMSO.L to "overweight" from
"equal-weight" and hikes TP by 33% to 36 pence, citing
significant restructuring progress; shares up 4.3% at 0719 GMT
** It raises Vonovia VNAn.DE to "equal-weight" from
"underweight", with TP to 23 euros from 19 euros, saying "a
slower macro backdrop and the end of the rate hike cycle could
create a supportive backdrop for the unloved shares"; shares up
1.5% at 0719 GMT
(Reporting by Gaëlle Sheehan)
((gaelle.sheehan@thomsonreuters.com; +48 58 7785110;))