Grand City Properties SA Maintains Buy Rating in First Berlin Equity Research Update

First Berlin Equity Research GmbH recently issued an update on Grand City Properties S.A. (ISIN: LU0775917882), confirming their Buy recommendation. Analyst Ellis Acklin raised the previous price target from EUR 12.90 to EUR 13.70. This adjustment reflects the company's solid performance in the first quarter and a positive outlook despite the ongoing housing shortage in Germany.

The report highlights a 3.4% Like-for-Like (LFL) rental growth and a diminishing rise in financing costs as key factors in Grand City Properties' promising trajectory. The firm's strategic adjustments over the past year, including deleveraging and successful perpetual note exchange offers, have fortified its capital structure, potentially cushioning against future economic challenges.

With the German real estate market beginning to stabilize, First Berlin anticipates a continued recovery in Grand City Properties' stock, which has already seen a 13% increase year-to-date. The reinforce of the Buy rating with an upgraded target price underscores confidence in the company's future performance.