Klepierre near to or outpacing pre-COVID levels, HSBC ups

Klepierre SA

21/02/2022 11:24

** HSBC ups Klepierre  LOIMP.PA  to "buy" from "hold" as it
sees that French mall owner's operating indicators are near to,
or outpacing pre-COVID levels
    ** The brokerage says 2021 fiscal year results showing a
high degree of recovery in most operational KPIs, a healthy
balance sheet and attractive dividend yields
    ** Klepierre forecast announced last week its 2022 net
current cash flow per share would top 2021's level, after
footfall and rent collection at its malls recovered close to
pre-pandemic levels in the second half of 2021  urn:newsml:reuters.com:*:nL8N2UQ5IK
    ** However, the brokerage warns the group's next phase of
growth is unclear with regard to acquisitions and development
pipeline
    ** "Operational challenges remain with respect to ongoing
potential tenant failures, a higher proportion of more volatile
turnover based rents and a recovery trajectory that is shallower
for some segments than others, as travel and business", it adds
    ** Group's plans for renewed capital redeployement and
progress over its proposed mixed use projects should be next
catalysts for the shares, while supported by its highly
attractive dividend yield", the brokerage says
    ** It adds the firm offers an "attractive" 6.9% dividend
yield for 2022 after raising 70% its dividend from 2020 
    ** HSBC also raises Klepierre's target price by 29.17% to 31
euros

 (Reporting by Diana Mandiá)
 ((diana.mandiaalvarez@thomsonreuters.com))