Analyst Denese Newton of Stifel Nicolaus maintained a Hold rating on Vonovia (0QFT – Research Report), retaining the price target of €30.00.
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Denese Newton has given his Hold rating due to a combination of factors affecting Vonovia’s current and future performance. The recent announcement of the CEO’s departure, while planned for a smooth transition, introduces an element of uncertainty in leadership. Despite this, the company’s financial performance, including a 4.3% rental growth and stable adjusted EBITDA, aligns with expectations and guidance for the year.
However, Vonovia’s stock has experienced significant volatility driven by interest rate fluctuations, which limits the potential upside. The regulated rental market and rising refinancing rates further constrain growth prospects. Additionally, while capital values have stabilized, the elevated loan-to-value ratio remains a concern. Given these conditions and the lack of significant changes in rental regulation or bond yield forecasts, maintaining a Hold rating is deemed appropriate.
In another report released yesterday, Jefferies also maintained a Hold rating on the stock with a €28.00 price target.