Deutsche EuroShop: Baader Helvea cuts on persisting pressure from the pandemic

Deutsche Euroshop AG

21/09/2020 08:10

** Baader Helvea downgrades Deutsche EuroShop  DEQGn.DE  to
"add" from "buy", cuts PT to EUR 13 from EUR 30 
    ** The broker said in a note late on Friday it believes the
pressure from the COVID-19 pandemic on the German shopping-mall
investor is likely to continue
    ** It estimates a write-down of around 22% in gross asset
value until 2022, factoring in lower dividends than in the past
    ** It sees the stock to remain highly volatile due to
uncertainties around shopping centre pricing, tenant
insolvencies and future rent reductions
    ** "Although footfall and average tickets per visitor in the
centres improved, a second wave of the virus will weigh on any
recovery", the broker says
    ** It adds that Thursday's announcement of intended capital
raise by shopping mall market leader Unibail  urn:newsml:reuters.com:*:nL8N2GE1ZQ shows
the critical situation of the industry and will probably open
the door for other companies in the sector to follow

 ((linda.pasquini@thomsonreuters.com))