Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
Investing.com - Citi has resumed coverage of Inmobiliaria Colonial Socimi SA (BME:COL) with a Buy rating and a price target of EUR7.50, following a period of suspended coverage.
The investment bank cited strengthened conviction in the real estate cycle recovery and prime office market strength as key factors behind the rating. Citi noted that interest rates have continued to decline while post-pandemic office trends show increased demand amid limited prime office supply.
The bank expects prime vacancy rates to decline further, which should push rents and capital values higher, resulting in improved earnings per share (EPS), dividends, and net asset value (NAV) estimates for the Spanish real estate company.
Citi projects EPS growth averaging 9.4% annually over the next five years, with new estimates increasing 17% in 2025 and 28% in 2026. These improvements are primarily attributed to stronger confidence around reversion capture and the ability to let developments at premium rental levels.
As the new real estate cycle takes hold, Citi suggests the stock valuation could shift toward historic growth cycle multiples of 37x earnings compared to approximately 18x today, or a dividend yield of 2.5% versus the current 5.4%.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.