Nexity jumps on announcing sale of property management business

Zovio

03/04/2024 09:47

** Shares in French real estate developer Nexity  NEXI.PA  rise
3.28%
** Co on Tuesday announced it finalised the sale of its
residential property management services business
    ** Shares on track for their best day since December 2023,
when it closed 10.7% higher after announcing it had begun
negotiations to sell the business to alternative asset fund
manager Bridgepoint  BPTB.L  based on a value of 440 million
euros
** NEXI shares subsequently plummeted after challenging
full-year results and a dividend cancellation
    ** "The share price fell sharply, reaching a low point in
our opinion," says Florian Cariou, Equity Research Analyst at
Midcap Partners
    ** Investors may have realized Nexity's actual valuation is
"very low" after comparing the sale's net amount with the
group's current market capitalisation, he adds
     ** "(This) could, in fact, explain this morning's rebound"
    ** Day's rise has helped the stock trim its YTD losses to
42.97% 
     

(Reporting by Dimitri Rhodes)
((mailto:Dimitri.rhodes@thomsonreuters.com;))