Morgan Stanley says risks for office sector still loom
08/01/2024 12:28
** Morgan Stanley remains cautious on Eurozone office
companies, noting persisting risks despite growth in stocks of
about 30% from the trough in October
** "Some Eurozone office stocks have rallied too far
following the rally in bonds, to a point where the market is no
longer pricing in fundamental challenges," the broker says
** The brokerage cuts Colonial COL.MC and Gecina GFCP.PA
to "underweight", saying recent share price strength understates
the threat of a further correction in capital values
** It also downgrades Merlin MRL.MC to "equal-weight",
pointing to the enhanced return profile now reflected in the
share price
** MS maintains "overweight" on Icade ICAD.PA ,
"equal-weight" on Covivio CVO.PA and "underweight" on
Aroundtown AT1.DE
(Reporting Clement Martinot)
((Clement.martinot@tr.com))