SocGen resumes Vonovia with 'buy' eyeing further expansion

Deutsche Wohnen SE

18/01/2022 13:34

** Societe Generale resumes coverage of Vonovia  VNAn.DE 
with "buy" rating and PT of EUR 66, saying the German real
estate company's portfolio expansion is "far from over"
    ** After last year's takeover of Deutsche Wohnen  DWNG.DE 
and subsequent EUR 8 bln ($9.10 bln) rights issue, the brokerage
says Vonovia should now be able to capitalise on its embedded
rent and value upside, including tighter ESG requirements for
residential landlords
    ** SocGen expects Vonovia to take advantage of future M&A
opportunities with its scalable platform and operational
expertise, as its European expansion plans remain unchanged,
including further growth in Germany, Sweden and France
    ** The broker adds the current discount to Vonovia's NAV
appears "overdone", which also supports the "buy" rating
    ** Out of 22 analysts that cover Vonovia, 17 rate the stock
"strong buy"/"buy", ​four "hold", and one "sell"; the median PT
is EUR 62.40

($1 = 0.8794 euros)

 (Reporting by Ana Cantero)
 ((ana.canteroros@thomsonreuters.com))