Deutsche EuroShop: Still uncertainties ahead, Baader Helvea cuts

Deutsche Euroshop AG

11/12/2020 07:39

** Baader Helvea downgrades German shopping-mall investor
Deutsche EuroShop  DEQGn.DE  to "reduce" from "add"
    ** It notes that, at the current status of the pandemic -
with vaccination taking some time and a potential shift to a
hard lockdown again - short-term prospects on shopping centre
operations remain "almost unpredictable"
    ** The broker is also cautious regarding year-end portfolio
valuation and sees uncertainties for short to mid-term level of
stationary retail rents as well as on costs for potentially
needed restructuring of centres
    ** The broker says it "underestimated the impact of a
vaccine phantasy on such hammered stock", thus raises PT to EUR
17.80 from EUR 13.00 after the strong share price recovery over
recent weeks
    ** The stock gained around 70% since the end of October
    ** "Even if we would not rule out share prices above our TP,
operational and market uncertainties as well as share price
volatility will probably remain high," the broker says.
    ** Shares in the company down around 6% in early Frankfurt
trade
    ** Among the 15 analysts that cover Deutsche Euroshop AG,
the breakdown of recommendations is 5 "strong buy" or "buy," 7
"hold" and 3 "sell" or "strong sell."

 ((Linda.pasquini@thomsonreuters.com))