On Wednesday, Goldman Sachs (NYSE:GS) adjusted its stance on Klepierre (EPA:LOIM) SA (LI:FP) (OTC: KLPEF) stock, shifting the rating from Buy to Neutral while maintaining a price target of €32.50. The real estate company experienced significant year-to-date (YTD) share outperformance compared to Goldman Sachs' coverage, prompting the revision of forecasts following the third-quarter results of 2024.
Klepierre's shares have witnessed a remarkable rise since being added to Goldman Sachs' Buy List on July 11, 2022, climbing 48.5%, which notably surpasses the 23.8% increase of the FTSE World Europe index and contrasts with the approximate 5.8% decline in the firm's coverage universe over the same timeframe. This outperformance has been a key factor in the analyst's decision to downgrade the stock.
The firm's earnings per share (EPS) and dividend per share (DPS) estimates for the years 2024 to 2028 have been slightly raised by 1% to 2%. This adjustment comes after incorporating Klepierre's nine-month results of 2024 and the company's updated full-year 2024 guidance into their financial models.
Goldman Sachs also noted an increase in the weighted average cost of capital (WACC) by 6 basis points, a change that reflects updated assumptions for the risk-free rate. Despite these adjustments, Goldman Sachs has decided to keep the 12-month price target for Klepierre steady at €32.50.
The maintained price target suggests an approximate 11% upside potential for Klepierre shares, compared to the average 17% upside potential for the stocks covered by Goldman Sachs. This comparison highlights the relative performance expectations for Klepierre in comparison to the broader market segment analyzed by the investment firm.
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