URW: recovery continues, Citi in support

(CercleFinance.com) - Unibail-Rodamco-Westfield's share price continued to rise on Thursday morning on the Paris Bourse, boosted by a recommendation upgrade from analysts at Citi.


In a note released on Wednesday, the US investment bank upgraded the retail property group's share to 'buy' from 'neutral', with a TP raised from E52.5 to E85.2.

In its opinion, the shopping center operator has entered a "new phase", marked by the prospect of an improvement in rental activity and lower interest rates likely to boost growth in 2025.

In Citi's view, the stock should benefit not only from the strengthening market, which should enable URW to deleverage, but also from stable earnings, a factor which, in its view, should pave the way for a tripling of the newly relaunched dividend.

While it points out that the stock is currently trading within its historical average valuation range, it believes that the absence of a recession and the growing scenario of a soft landing could justify a share price above E100.

After gaining more than 1.5% yesterday following these comments, URW shares were up a further 0.5% today.


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