Kepler Cheuvreux ups Colonial to 'buy' on underappreciated risk-reward profile

Colonial SFL SOCIMI SA

02/06/2025 15:03

** Kepler Cheuvreux upgrades Spanish real estate company Inmobiliaria Colonial COL.MC from "hold" to "buy" on underappreciated risk-reward profile

** The broker points out Colonial's recent 622 million euro capital increase, replenished development pipeline and portfolio valuation that bottomed out by end-2024 and expects a "robust" earnings per share compound annual growth rate over 2024-27

** "The current share price fails to reflect this embedded growth potential," it says

** It also believes that "the -38% discount" to net tangible assets for 2025 appears excessive, particularly as valuation gains are expected to continue, notably in prime locations

** The broker raises target price by over 13% to 6.90 euros

** Out of 19 analysts that cover Inmobiliaria Colonial, 12 rate the stock "strong buy" or "buy," ​five rate "hold" and two rate the stock "strong sell" or "sell" - data compiled by LSEG

** Up to previous session's close, shares were up 18.5% YTD

(Reporting by Marta Serafinko in Gdansk)

((Marta.Serafinko@thomsonreuters.com; +48 58 769 66 00;))