Deutsche Bank slashes Patrizia's TP by 42% as profitability risks loom
24/10/2022 10:09
** Deutsche Bank cuts Patrizia SE's PATGn.DE target price
by 42% to EUR 14.50 ahead of the real estate investment
manager's 9-month results, citing profitability concerns to come
** The brokerage expects the Augsburg-based company's
profitability to suffer from lower transaction and performance
fees and higher cost base
** It estimates the group's January-September EBITDA will
fall by 21% to EUR 75 mln ($74 mln)
** DB cuts its 2022 EBITDA forecast by 22%, saying this
"very significantly" undercuts the company's guidance range and
makes DB "the most conservative broker on the street"
** It also "markedly" lowers 2023-2024 profitability
estimates
** The new target price still represents a 40% upside to
Monday's opening price of EUR 8.70 per share, and DB sticks to
its "buy" rating
** The stock is down 10.5% at 0900 GMT, bringing YTD losses
to 62% and making it the worst performer among German small-caps
.SDAXI
** Patrizia will release its 9-month results on Nov. 9
($1 = 1.0175 euros)
(Reporting by Tristan Chabba)
((Tristan.chabba@thomsonreuters.com))