Inmobiliaria Colonial, SOCIMI, S.A. (COL: MC) (OTC: IMQCF) received a stock rating upgrade by Jefferies from Hold to Buy.
Accompanying this positive shift in perspective, the firm also increased its price target for the real estate company's shares from EUR5.00 to EUR7.00. The upgrade was attributed to the company's sustained strong operational performance and anticipated reduction in leverage.
Jefferies' outlook on Inmobiliaria Colonial is optimistic, citing the company's potential to capitalize on the growing office markets in Paris and Madrid. The analyst's report highlighted the expectation that the company's EPRA Loan to Value (LTV) ratio will improve significantly, by approximately 450 basis points, reaching an estimated 40% by the end of 2024.
Inmobiliaria Colonial's strategic position in key European markets is expected to be a driving force behind its growth. The company's focus on high-demand areas within Paris and Madrid positions it well to benefit from the polarization of these office markets, as per Jefferies.
The revised price target of EUR7.00 represents a notable increase from the previous target of EUR5.00, suggesting that Jefferies sees a more robust value proposition for investors in Inmobiliaria Colonial's stock.
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