Barclays raises Aedifica stock rating, targets EUR74.00

Published 20/05/2025, 08:04
Barclays raises Aedifica stock rating, targets EUR74.00

On Tuesday, Barclays (LON:BARC) analyst Celine Soo-Huynh upgraded Aedifica SA (AED:BB) stock rating from Underweight to Overweight and raised its price target from EUR60.00 to EUR74.00. The upgrade was primarily attributed to the company’s renewed focus on growth strategies. Soo-Huynh highlighted that although the outcome of the potential Aedifica/COFB merger remains uncertain, Barclays has increased its acquisition assumption for Aedifica to €75 million annually from 2026 to 2029, a significant jump from the previous assumption of €0.

The analyst pointed out that previously, concerns about limited earnings growth in the healthcare sector and Aedifica specifically had prompted caution. However, with the revised acquisition estimates, Barclays now projects a 0.9% five-year EPS compound annual growth rate (CAGR) for Aedifica. The firm also noted that if the merger with COFB is finalized, it could enhance the combined entity’s liquidity and market relevance, potentially making it more appealing to US investors who have not been significantly exposed to Aedifica.

In the event of a successful merger, Barclays’ scenario analysis suggests that Aedifica’s EPS CAGR for fiscal years 2025 to 2029 could increase from 0.7% based on newly published numbers to over 2%, assuming the deal is completed and the anticipated synergies are realized. Soo-Huynh remarked that while a 2% CAGR might seem modest, it is quite attractive when combined with the current approximate 8% earnings yield, the possibility of further accretive transactions, and a relatively defensive income stream.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.