Sell Rating Maintained for Aroundtown SA Due to High Financial Leverage and Market Risks

Bart Gysens, an analyst from Morgan Stanley, reiterated the Sell rating on Aroundtown SA (AT1 – Research Report). The associated price target is €2.00.

Bart Gysens has given his Sell rating due to a combination of factors related to Aroundtown SA’s financial position and market conditions. Despite a generally positive outlook for the European real estate sector, Aroundtown faces significant challenges due to its high financial leverage. The company’s Loan to Valuation ratio is considerably above average, which poses a risk in the current market environment where asset valuations have not been fully adjusted.
Gysens anticipates that this high leverage will limit Aroundtown’s ability to benefit from the stabilization of asset values and the beginning of a new market cycle. As a result, he expects minimal long-term valuation support for the company’s shares. These factors combined have led to the decision to maintain a Sell rating on Aroundtown SA’s stock.

In another report released on March 26, Jefferies also maintained a Sell rating on the stock with a €2.00 price target.

AT1’s price has also changed moderately for the past six months – from EUR2.980 to EUR2.498, which is a -16.17% drop .