Carmila is up almost 2% in Paris, as Jefferies announced on Wednesday that it had initiated coverage of the stock with a Buy recommendation and a price target of 17.8 euros.

In a sector note on European property companies, the US 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, at over 8.5%.

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

Jefferies also points out that the sector has always performed well on the stock market when the US Federal Reserve has put an end to its rate hikes.

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