Covivio: Barclays double-downgrades stock
(CercleFinance.com) - Barclays has downgraded its previously positive recommendation on Covivio, to "underweight", having cut its corresponding target price by 12% to 64 euros, in comments on office property stocks in France.
"2021 was supposed to be the year of the recovery, and yet we find it difficult to see a quick rebound from here," the broker says, which expects low like-for-like rental growth, partly due to a lack of indexation.
Regarding Covivio, the broker highlights the stock's outperformance relative to its peers over the past six months and its high debt, which may require remedial action to be taken. In addition, he now expects a slower recovery in results of its hotel portfolio.
The share is currently down over 2.5%.
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