Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Desjardins downgraded InterRent REIT (TSX:IIP_u) (IIP-U:CN) from Hold to Sell while maintaining its price target of C$13.55, citing potential tax implications for investors.
The downgrade comes ahead of a vote scheduled for August 25, with Desjardins specifically recommending that non-tax-exempt investors sell their holdings before the deal closes to avoid higher taxation.
According to the transaction circular referenced by Desjardins, approximately 21-24% of the C$13.55 offer price will be classified as ordinary income and taxed at the unitholder’s marginal tax rate.
Desjardins analyst Kyle Stanley maintained the C$13.55 price target despite the rating change, suggesting the fundamental valuation remains unchanged.
The firm noted that for investors unconcerned with the tax implications, the unit price is expected to converge with the deal price ahead of the anticipated closing in late 2025 or early 2026.
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