JPM flags supportive value trends for Klepierre amid macro risks - ups to 'neutral'

Klepierre SA

05/09/2024 07:38

** J.P.Morgan upgrades French shopping centre operator
Klepierre  LOIM.PA  to "neutral" from "underweight," citing
improving property value trends and a resilient rental growth
evolution
    ** It however notes the remaining risks from a potentially
weaker European consumer market, flagging a likely pricing power
decrease, building margin squeeze, likely softening final demand
and potential labour market weakening
    ** It forecasts about 2.2%/year EPS growth for Klepierre
over the next three years, with risks tilted to the upside from
potentially lower rates, and a conservative 1%/year LFL value
growth
    ** "The main highlight of Klepierre's 1H24 results were
values ... indicating that the inflection point in values for
Klepierre had occurred in Dec-23" - JPM
    ** It ups PT by 32% to 29 euros
    ** JPM also sees scope for additional M&A given the French
retail operator's strong balance sheet metrics
    

 (Reporting by Anna Peverieri)
 ((Anna.peverieri@thomsonreuters.com))