Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Bernstein has upgraded LEG Immobilien AG (ETR:LEGn) (LEG:GR) (OTC:LEGIF) from Underperform to Market Perform and raised its price target to EUR80.00 from EUR74.00.
The upgrade brings Bernstein’s rating for LEG in line with its ratings for the other three German residential landlords it covers, including Grand City Properties.
Bernstein cited LEG’s recent underperformance, discounted valuation, and potential near-term catalysts as supportive factors for the upgrade, though it maintains a neutral stance on Germany’s residential sector due to macroeconomic headwinds.
The firm previously maintained a lower rating for LEG due to management’s less proactive approach in securing property disposals to stabilize the balance sheet, noting that LEG’s loan-to-value (LTV) ratio of 48.4% and EPRA LTV of 51.8% are both at a premium compared to peers.
Bernstein now expects asset values to continue their mild recovery, with LEG guiding for 0.5-1.0% growth over the first half of 2025, a trend the firm expects to continue into the second half, helping to reduce balance sheet pressures.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.