Handelsbanken sees upside from Swedish real estate shares underperformance

Sagax AB

12/12/2024 09:59

** Handelsbanken upgrades six Swedish real estate companies
to "buy" from "hold" as it sees "plenty" of upside from the
sector's share price underperformance 
    ** It says the sector decline of 16% since October 2024 has
been unwarranted and mostly affected by volatile US-rates
    ** "Lower rates [in Sweden], an improving macro economy and
more jobs all fit late-cyclical real estate", it says
    ** It adds that residential property companies should offer
an improved risk/reward ratio due to expected rent indexation in
2025 and 2026
    ** It lists Dios  DIOS.ST,  Catena  CATE.ST,  Hufvudstaden,
Platzer  PLAZb.ST,  Atrium Ljungberg and Stendorren  STEFb.ST 
as its preferred stocks 
    ** High office vacancies in Stockholm bring uncertainty to
Fabege  FABG.ST,  Castellum  CAST.ST,  Atrium Ljungberg
 ATRLJb.ST  and Hufvudstaden  HUFVa.ST 
    ** It flags however that Hufvudstaden has shown relative
operational strength
    
 COMPANY      NEW RATING  OLD RATING  NEW TP      OLD TP
 Atrium       BUY         HOLD        no change   SEK 319
 Ljungberg                                        
 Platzer      BUY         HOLD        no change   SEK 136
 Sagax        BUY         HOLD        no change   SEK 355
 NP3          BUY         HOLD        SEK 355     SEK 325
 Heba         BUY         HOLD        SEK 47      SEK 46
 John         BUY         HOLD        no change   SEK 86
 Mattson                                          
 
 (Reporting by Anna Chaberska)
 ((Anna.chaberska@thomsonreuters.com))