Citi observes the stock has rallied significantly from its 2020 lows yet expects an 2021 decline of -13% in earnings per share. The first half is expected to have a negative impact on store closures in Europe and rent concessions could extend well into the second half.
Yet the broker expects a rebound in earnings in 2022 and an average -5% decline over 2023-25 as an equity raising is assumed. The broker emphasises the company is under the impression that a return to 2019 rents can still be achieved.
Sell maintained. Target rises to EUR27.70 from EUR21.20.
Sector: Real Estate.
Current Price is $5.38. Target price not assessed.
