NP3 Fastigheter: Valuation more demanding, Kepler cuts
26/10/2020 08:47
** Kepler Cheuvreux downgrades Swedish real estate company
NP3 Fastigheter NP3.ST to "hold" from "buy" saying that
valuation has become more demanding
** NP3 has faced the COVID-19 crisis surprisingly well, the
brokerage says
** Therefore, it thinks it is logical to cut its expected
valuation risk premium somewhat as it sees only limited upside
potential
** Kepler cuts its expected valuation risk premium from 10%
to 5% but lifts its 2021 funds from operations (FFO) by 13% on
the back of strong margins in Q3
** Citing the strong margins, it lifts its target price by
nearly 19% to SEK 114
** Among the two analysts that cover NP3, the breakdown of
recommendations are one with "strong buy" and one with "hold";
median target price is SEK 96
((marta.frackowiak@thomsonreuters.com))