Unibail-RW: Oddo maintains buy rating after sale of a tower

(CercleFinance.com) - On Tuesday an analyst at Oddo BHF said that he is maintaining a "buy" rating on the share of the Unibail-Rodamnco-Westfield group, with the group yesterday evening announcing reaching an agreement with a consortium of institutional buyers regarding the sale from the Majunga tower at La Défense business district next to Paris for a net selling price of 850 million euros.


URW is now midway through its strategic disposal plan of 6 billion euros. Indeed, it has already made disposals amounting to 3.1 billion euros since December 2017, with an average net initial yield of 4.5% and a premium of 7.2% compared to appraised values. URW has yet to sell assets worth 2.9 billion and we see management reach these targets in 2021, considering that we are still expecting sales of offices and/or European shopping centers in 2019, Oddo BHF said.

However, regretting that uncertainties still weigh on the group following the integration of Westfield, the broker confirms its target price of 165 euros, meaning upside potential that is limited to 12%.



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