UBS has increased its price target for Aroundtown from 2.00 euros to 3.30 euros while keeping a "Neutral" rating. The rise is due to lower capital costs resulting from reduced debt and liquidity risks.
The operating FFO for the year is expected to be at the upper end of the previous target range. Despite these positive changes, dividend risks persist, and Aroundtown remains heavily short-sold in the European real estate sector. Profit distributions are anticipated to resume by 2026.
The maintained investment recommendation takes into account the strong share price performance of Aroundtown since the start of the year.