ODDO starts Heijmans coverage at 'outperform' on Dutch residential market recovery
14/11/2024 11:29
** ODDO BHF initiates coverage on Heijmans HEIJ.AS with an
"outperform" rating and TP of EUR 36.5, saying the Dutch
construction services company, being the second-biggest land
bank owner in the country, will benefit from the Dutch
residential market recovery
** The Dutch residential market, depressed since 2020, is
recovering, says the broker, and as Heijmans' land positions
were purchased 10-15 years ago and house prices have far
outpaced inflation, it expects "material" profit to be realized
** "This explains why we expect solid revenue growth and
EBITDA margins to exceed 9% in the resi division," it says,
adding Heijmans remains undervalued versus European peers
** ODDO BHF also expects the company to benefit from strong
demand from the infrastructure and energy market, helped by a
"huge renovation wave"
** Shares in Heijmans are up 11%, after rising as much as
14.2%, to their highest price since mid-October 2008
** The gains add 77.4 million euros ($81.44 million) to the
company's market cap
($1 = 0.9504 euros)
(Reporting by Anna Peverieri)
((Anna.peverieri@thomsonreuters.com))