UBS cuts Cofinimmo stock rating to neutral, raises target to €80.91

Published 08/05/2025, 07:42
UBS cuts Cofinimmo stock rating to neutral, raises target to €80.91

On Thursday, UBS analyst Charles Boissier downgraded Cofinimmo (EBR:COFB:BB) stock from Buy to Neutral, adjusting the price target to €80.91, an increase from the previous €74.70. The revision follows Aedifica’s all-share offer for Cofinimmo, which suggests a valuation of €80.91 per Cofinimmo share. This offer represents a 20.8% premium over Cofinimmo’s undisturbed share price of €67.00 as of April 30, 2025.

Boissier’s commentary highlighted the strategic benefits of merging two medium-sized Belgian-listed pan-European healthcare REITs to create a single European leader in the sector. The offer allows Cofinimmo shareholders to receive 1.16 Aedifica shares for each Cofinimmo share they hold. Cofinimmo has acknowledged the proposal, stating that it is currently assessing the offer to determine its alignment with the best interests of the company and its shareholders.

The offer period is expected to commence on August 18 and conclude on September 30. UBS’s analysis considers the potential accretion to Aedifica’s shareholders and examines both the possible upside and downside risks associated with the offer. The firm identifies the primary downside risk as the execution risk pertaining to Aedifica’s offer, which is contingent upon the approval of Aedifica’s shareholders for the share issuance necessary to fund the transaction. This approval is to be sought at Aedifica’s Extraordinary General Meeting (EGM) scheduled for June 12.

Conversely, the potential upside could emerge from an improvement in the terms of the offer by Aedifica or the intervention of a third party. UBS regards the current offer as equitable for Cofinimmo’s stakeholders and believes that the risks, both upside and downside, are balanced. As the market anticipates the upcoming offer period and EGM, Cofinimmo’s stock will reflect the evolving situation as shareholders and the company consider the proposed merger’s implications.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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