UBS has increased its price target for Aroundtown from 2.00 to 3.30 euros while keeping a "Neutral" rating. The increase is due to lower capital costs, which reflect a decrease in debt and liquidity risks. The analyst expects the operating sector key figure FFO for the year to be at the upper end of the previous target range.
Despite these positive adjustments, there are ongoing dividend risks and Aroundtown is one of the most short-sold stocks in the European real estate sector. Profit distributions are expected to resume by 2026. The analyst's decision to maintain the investment recommendation is supported by the solid share price performance since the beginning of the year.