Klépierre: Invest Securities confirms rating
(CercleFinance.com) - Invest Securities says that Klépierre has published 2020 net current cash flow (CFNC) per share of 2.
05 euros, down 27.4%, largely due to the crisis.
While other real estate companies have remained evasive on their outlook, Klépierre has estimated its current net cash flow per share for 2021 at 1.90 euro, which suggests that 2021 will be even more difficult than 2020. The uncertainty of the publication also relates to the distribution for 2020, which will only be set in May, the analyst says.
The broker assumes that management will remain cautious by announcing a 2020 dividend cut by 1.10 euro before its AGM (vs. 2.20 euros in 2019), although will be upbeat on its future distribution policy. The company could therefore post an adjusted LTV of 46.1% in 2021 and then return to the 2020 level in 2024 (42.5%), taking into account a gradual rebound in distribution to 2.10 euros over this period, Invest Securities adds.
The analyst confirms its buy rating on the stock, along with a target price of 25 euros (current price: 17.8 euros, +0.9%).
Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
05 euros, down 27.4%, largely due to the crisis.
While other real estate companies have remained evasive on their outlook, Klépierre has estimated its current net cash flow per share for 2021 at 1.90 euro, which suggests that 2021 will be even more difficult than 2020. The uncertainty of the publication also relates to the distribution for 2020, which will only be set in May, the analyst says.
The broker assumes that management will remain cautious by announcing a 2020 dividend cut by 1.10 euro before its AGM (vs. 2.20 euros in 2019), although will be upbeat on its future distribution policy. The company could therefore post an adjusted LTV of 46.1% in 2021 and then return to the 2020 level in 2024 (42.5%), taking into account a gradual rebound in distribution to 2.10 euros over this period, Invest Securities adds.
The analyst confirms its buy rating on the stock, along with a target price of 25 euros (current price: 17.8 euros, +0.9%).
Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.