(CercleFinance.com) – Klépierre shares were among the biggest decliners in the SBF 120 on Monday on the Paris Stock Exchange, penalized by a lower recommendation from RBC.
The Canadian bank’s analysts this morning downgraded their advice on the title of the commercial real estate group to ‘underperformance’ compared to ‘performance in line with the sector’ previously.
Their price target has, however, been revised upwards, to 25 euros.
According to Royal Bank of Canada, Klépierre now displays a ‘less attractive’ risk/return profile than those of other players in its sector.
‘We believe that Klépierre benefits from a sound strategy and good operational execution,’ says RBC in its note.
‘However, after a 45% outperformance of its stock compared to the rest of the European real estate sector over the past year, the stock is trading at more demanding multiples compared to its five-year historical average vis- towards the sector’, explains the Canadian bank.
RBC adds that the slowdown in economic growth, combined with the rise in interest rates, poses a risk of downward revision of earnings expectations for the shopping center operator for the coming years.
At 12:15 p.m., the stock lost 2.7% to 136 euros, after having dropped more than 3% during the morning.
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