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On Wednesday, Kepler Cheuvreux raised its rating on Aedifica SA (AED:BB) shares from Hold to Buy, also increasing the price target to EUR 74.00 from EUR 72.00. The revision comes after a period of underperformance for the stock, which had been previously downgraded by the firm nearly a month ago.
The analysts at Kepler Cheuvreux cited the recent pullback in Aedifica’s stock price, excluding dividend impact, as a key factor in their decision to upgrade. They noted that the uncertainties surrounding the potential deal with Cofinimmo (EBR:COFB) and the short positions taken by hedge funds have largely been resolved.
According to Kepler Cheuvreux, even if the merger with Cofinimmo does not go through, Aedifica has a viable future as an independent entity. However, if the deal is completed, it could offer even greater financial prospects. The analysts made only minor adjustments to their model, including a 10 basis point reduction in the weighted average cost of capital (WACC), which contributed to their more optimistic outlook on the stock.
The upgrade to a Buy rating reflects Kepler Cheuvreux’s confidence in Aedifica’s standalone capabilities as well as the potential benefits of the merger with Cofinimmo. The new EUR 74.00 price target suggests that the firm sees further upside for the stock, indicating a positive view on its valuation.
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