Jefferies ups Covivio to 'buy' on 2024 growth forecasts

Covivio SA

05/03/2024 07:52

** Jefferies upgrades French real estate group Covivio
 CVO.PA  to "buy" from "hold" and raises target price to 53
euros from 48 euros as it sees potential for growth in 2024
after a year of underperformance
    ** "Despite selling EUR 1.5 bln of assets over 2023-24,
Covivio will be able to grow its adjusted EPRA earnings by +5%
over 2023-24e", Jefferies says
    ** The broker also points to the group's efficient strategy
in dealing with leverage issues thanks to its diversified asset
and geographical portfolio
    ** "The stock has been the worst performer in our coverage,
down 37%", Jefferies says, noting the attractive valuation of
the stock
    ** The raised target price of EUR 53 implies a 33% upside
potential on the current share price, it adds
    ** Out of 14 analysts that cover Covivio, seven rate the
stock "strong buy/buy", ​five rate it "hold" and two rate it
"strong sell/sell"
    

 (Reporting by Mathias de Rozario)
 ((mathias.derozario@thomsonreuters.com))