Sell Rating for Icade SA Amid Rising Vacancy Rates and Lower Earnings Projections

In a report released today, Jonathan Kownator from Goldman Sachs downgraded Icade SA to a Sell, with a price target of €18.00.

Jonathan Kownator has given his Sell rating due to a combination of factors affecting Icade SA. The primary concern is the anticipated increase in vacancy rates driven by upcoming lease expirations, which could exacerbate the already challenging conditions in the Paris office market. The market is facing higher supply and weakening demand, contributing to a less favorable environment for the company.
Additionally, Kownator’s revised earnings per share estimates for 2025-2029 reflect a decrease, with a projected 6% decline. The target price for the stock has been adjusted downward by 5% to €18.0, indicating a potential downside of approximately 15% compared to an average upside of 9% for the coverage. The valuation of Icade’s shares, despite outperforming the sector by 8% over the last three months, remains at a discounted level, yet still significantly below historical highs, particularly during periods of high vacancy such as the COVID-19 pandemic.