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Investing.com - Deutsche Bank raised its price target on TAG Immobilien AG (ETR:TEG) to EUR19.00 from EUR18.00 on Friday, while maintaining a Buy rating on the German real estate company.
The price target increase follows TAG Immobilien’s acquisition of 5,300 residential units in Poland and a recent equity raise. Deutsche Bank estimates the moves will result in stabilized funds from operations (FFO) per share accretion of over 7% with limited net tangible assets (NTA) per share dilution.
The bank also expects TAG Immobilien to benefit from leverage reduction due to revaluation benefits and lower investments in the near future. This improved financial position could provide the company with greater flexibility in its expansion strategy.
Deutsche Bank views the accelerated ramp-up of TAG’s Polish rental portfolio as particularly positive, noting it should support stock valuation through higher earnings multiples on the Polish business segment.
The bank further suggests that TAG Immobilien’s strengthened position in Poland might allow the company to adjust its business strategy, potentially reducing its build-to-hold operations in favor of build-to-sell activities.
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