UBS has increased its price target for Aroundtown shares to EUR 3.30, a 65% increase from the previous target of EUR 2.00. The rating remains "Neutral."
The adjustment is due to lower capital costs, which reflect a decrease in debt and liquidity risks. The operating FFO for the year is expected to be at the upper end of the target range. However, concerns about dividend risks persist.
Aroundtown SA is one of the most short-sold stocks in the European commercial real estate sector. Profit distributions may resume by 2026. Following the announcement, Aroundtown shares temporarily increased by 0.95% and were trading at EUR 3.20 on XETRA.