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Investing.com - Goldman Sachs downgraded Aroundtown SA (AT1:GR) (OTC:AANNF) from Buy to Neutral on Tuesday, setting a price target of EUR3.20.
The downgrade comes despite Aroundtown’s recovery in underlying operating trends and reduced loan-to-value ratio following significant asset disposals, according to the investment bank’s research note.
Goldman Sachs cited Aroundtown’s intention to resume acquisitions as announced in its 1H25 results, which the firm believes will make further deleveraging more difficult for the real estate company.
The investment bank expressed concern that investors will remain sensitive to Aroundtown’s balance sheet leverage levels, which Goldman Sachs considers "still somewhat high" when accounting for hybrid securities.
Goldman Sachs also noted that a recently announced change in Aroundtown’s Chief Financial Officer position "may introduce uncertainty around the strategic direction for the company in the near term."
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