Baader Helvea ups TAG Immobilien to 'add' on future earnings growth expectations

TAG Immobilien AG

18/06/2024 08:56

** Baader Helvea raises German real estate company TAG
Immobilien  TEGG.DE  to "add" from "reduce", citing improvements
in balance sheet and expected growth ahead
    ** Despite challenging sector environment and limited growth
on German market, Baader expects earnings growth in upcoming
years thanks to TAG's rental portfolio expansion and
build-to-sell activities in Poland
    ** Basing on balance sheet's stabilization and portfolio
devaluations' process nearing an end, the broker sees a return
to net asset value per share growth starting from next year
    ** The brokerage estimates funds from operations (FFO) to
rise by 4-5% in 2025/26, projecting the figure to come above
current consensus
    ** "Recent share price consolidation and total return
potential of about 9% includes our expectation of a dividend
resumption for this year," the broker adds

 (Reporting by Amir Orusov)
 ((Amir.orusov@thomsonreuters.com))