Klépierre: share rises, as Jefferies upgrades to buy

(CercleFinance.com) - Klépierre shares were up on Monday on the Paris Bourse, boosted by Jefferies' comments, by which the broker considers that the worst of the crisis is over for European property stocks.


At around 2:00 pm, the shopping center specialist's shares were up by 1.6%, while the SBF 120 index was up by around 1%.

In a sector note, Jefferies points out that, despite an 8% decline in the EPRA index since the start of the year, it expects the sector's stock market performance to be positive this year, thanks to the effect of the first rate cuts.

The broker stresses that Klépierre's lower debt levels should enable it to be "more opportunistic" in its market, a prospect made all the more attractive by the fact that the stock's valuation has become attractive again following its recent underperformance, it adds.

The broker also considers that the share's potential yield is among the highest in the sector, notably due to an assured dividend yield of 7.5%.

It has therefore upgraded the stock from 'hold' to 'buy', raising its target price to E28 (from E26 previously).


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