TAG Immobilien tops STOXX Real Estate index after DB upgrade

Klepierre SA

27/06/2024 09:47

** Shares in TAG Immobilien  TEGG.DE  rise as much as 6.2%,
topping pan-European STOXX 600 Real Estate sub-index  .SX86P ,
after Deutsche Bank upgrades the German group to "buy" from
"hold"
    ** DB analyst Thomas Rothaeusler says sentiment in the
European real estate sector has "clearly improved from rather
depressed levels a year ago"
    ** "With the rate cycle rung in by the ECB, we believe the
sector outlook will likely turn even more positive," Rothaeusler
adds
    ** DB also ups LEG Immobilien  LEGn.DE  and
Unibail-Rodamco-Westfield  URW.PA  to "buy" from "hold", and
initiates VGP  VGP1.BR  with "buy"
    ** Separately, Jefferies says TAG Immobilien has taken
"corrective steps to reduce leverage", while warning that
Vonovia's  VNAn.DE  "current leverage limits FFO growth"

    RATINGS, PT CHANGES AND INITIATIONS BY DB:
  
 COMPANY      RATING      OLD RATING   PT          OLD PT
 TAG          Buy         Hold         EUR 16      EUR 11
 Immobilien                                        
 Vonovia      Buy         unchanged    EUR 33      EUR 30
 Grand City   Hold        unchanged    EUR 11      EUR 10
 Properties                                        
 LEG          Buy         Hold         EUR 90      EUR 75
 Immobilien                                        
 Gecina       Hold        Buy          EUR 100     EUR 110
 Klepierre    Hold        Buy          EUR 26      unchanged
 Unibail      Buy         Hold         EUR 85      EUR 70
 Rodamco                                           
 Westfield                                         
 VGP          Buy         -            EUR 125     -
 Merlin       Buy         unchanged    EUR 13      EUR 11
 Properties                                        
 PSP Swiss    Hold        -            CHF 117     -
 Property                                          
 
 (Reporting by Bernadette Hogg and Marleen Kaesebier)
 ((Bernadette.hogg@thomsonreuters.com))