Jefferies announced on Wednesday that it had initiated coverage of Carmila shares with a Buy recommendation and a price target of 17.8 euros.

In a sector note on European property companies, the American broker explains that the Galimmo acquisition, expected to be completed next year, should be accretive both in terms of free cash flow and net asset value.

He adds that the stock also boasts a solid dividend yield of over 8.5%.

In terms of the sector, the broker believes that a good deal of bad news has now been priced in, which leads him to be generally positive on the sector, despite the high level of indebtedness.

Finally, Jefferies notes that the sector has always performed well on the stock market when the US Federal Reserve has halted its rate hikes.

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