Unibail-Rodamco: Invest Securities reduces target price

(CercleFinance.com) - The broker says that the operational data for 2020 has not led it to significantly revise its expectation of a decline in portfolio valuations for 2019-2022 (-27% vs.
-23%).

Analysts say that the decision to cancel the 2020-2022 dividend is, in their opinion, the best way to preserve intrinsic value for shareholders at a time when other real estate companies are resorting to dilutive scrip dividend payments.

They add that their sensitivity tests on LTV nevertheless confirm that 8 billion euros of divestments should be necessary. There are two distinct scenarios: (i) a straightforward disposal and 2024 NAV close to 100 euros and
(ii) a forced sale of assets at a significant discount, leading to an NAV of 58 euros.

The broker has reduced its target price for the share to 73 euros (vs. 78 euros), although has confirmed its buy rating on it.

Note that the share is currently down about 3.5% at 59 euros.


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