First Berlin Equity Research Updates Rating on Aroundtown SA

First Berlin Equity Research GmbH released a research update on Aroundtown SA, maintaining its BUY recommendation. Analyst Ellis Acklin raised the target price from €3.40 to €3.50. This decision follows Aroundtown's solid operational performance in the first quarter, characterized by a 2.8% like-for-like rental growth and a decrease in rising financing costs.

The analyst expects stability in operations, with strong support in the residential and hotel sectors balancing the still challenging office market. The company's capital structure was improved last year through deleveraging, increased secured debt, and a successful perpetual note exchange, predicted to positively impact the FFO by approximately €35 million in coupon savings starting 2025.

Acklin believes Aroundtown has overcome significant hurdles in recent quarters, thus justifying the sustained purchase recommendation and the new target price.