(News Bulletin 247) – Invest Securities confirms its buy rating on Covivio shares, with a price target nevertheless revised downwards, from 61 to 54.6 euros.
The analysis office reports that Covivio published revenues up +7.6% on a like-for-like basis thanks to very strong organic growth in hotel revenues (+20%) and the still sustained increase in German housing rents (+3.8%).
‘The signals sent are encouraging but the continuation of the improvement in occupancy in H2 is not guaranteed’, underlines the analyst who indicates that the net increase in financial costs leads to a stable RNR (2.36E/share).
The refinancing conditions for the half-year reflect the good balance sheet situation of the group (the guidance for RNR 2023 has also been slightly raised by +2.4% (€420m) and the dividend (€3.75m) still seems sustainable for the next three years, sums up Invest Securities.
Nevertheless, ‘the company could be forced to cut its dividend in 2026 or 2027 (3.33E according to our estimates). The yield would nevertheless remain very clearly above 6% on the basis of the current price,’ concludes the broker.
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