Citi ups Merlin Properties to 'neutral' as risk reduces

MERLIN Properties SOCIMI

14/02/2025 11:12

** Citigroup upgrades Spain's real estate firm Merlin
Properties  MRL.MC  to "neutral" from "sell" as it sees risk
reducing around existing portfolio
    ** "We estimate that the office, shopping centre, and
logistics portfolio has limited downside left and estimate
upside from 2026 with this occurs sooner," the broker says
    ** It sees the data centre business progressing closer to
valuation certainty
    ** However, as the data centre build-out continues, the
broker flags that the higher risk associated with creating a new
operational business from scratch is at this point balancing the
potential upside
    ** Out of 22 analysts that cover Merlin, 19 rate the stock
"strong buy" or "buy" and ​three rate it "hold"

 (Reporting by Tiago Brandao)
 ((Tiago.Brandao@thomsonreuters.com;))