First Berlin Equity Research Reiterates Buy Rating for Aroundtown SA

First Berlin Equity Research GmbH has reaffirmed its BUY recommendation for Aroundtown SA, despite reducing the target share price from €4.10 to €3.80. The six-month report highlights stable operational performance but notes the firm’s ongoing challenges with financial constraints. The like-for-like rental growth rate reached 2.7%, with valuations remaining stable.

Recent measures in refinancing and liability management have extended maturity dates to 2028, while the increased stake in GCP, cessation of share buybacks, and a €55 million rental uplift pipeline from asset transformations are key earnings drivers. However, the timing is crucial as these factors will take time to offset elevated refinancing costs, indicating a mid-term expansion for FFOPS.

Aroundtown is seen as better positioned now, with reduced refinancing risks and clear internal growth. The updated forecasts suggest a fair share value of €3.80, offering a potential upside of 90%, thus maintaining the Buy rating.