Covivio: Oddo expects no upside in near term

(CercleFinance.com) - Oddo has confirmed its Neutral rating on the share of Covivio (formerly Foncière des Régions), value, along with its target price of 88 euros (just under the share's current price).


The broker's analysts do not see any upside potential in the near term.
Oddo says that, at a constant consolidation scope, the group's management is aiming for 2.5% growth in rental income in 2019 (compared to 3.4% in 2018). It considers that this guidance is very realistic, while the broker itself expects growth of 2.6% at a constant consolidation scope in 2019.

In the end, the broker expects a value creation of +26% on the delivery of the committed pipeline at the end of 2019 (vs. management's expectation of +30%) and a 90 million euro rise in rents over 2019-2024, vs. management's expectation of +110 million euros (i.e. +15% of annualised rental income at the end of 2018).



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