Global investment giants support Spanish Real Estate Investment Trust companies at the start of the year
The two most important Spanish Real Estate Investment Trust with Colonial in front, get the favor of the American giants of the analysis in these first days of the year that has just begun. JP Morgan, Bank of America Merrill Lynch and Morgan Stanley have launched in recent days positive reports that support the positive evolution in the stock market of the national giants of the sector.
While lowering the recommendations of Unite Group, Bill Yellow Group, PSP Swiss Property and Shurgard Self from underweight to neutral, JP Morgan maintains Alstria and Vonovia as favorite values in Europe and ratifies its favorable expectations for Spain with Merlin Properties and Colonial As main assets.
Additionally, it continues to bet heavily on the Paris office market and points to Gecina as the best vehicle to channel investments in this market. It also raises the recommendation of Grand City Properties from neutral to overweight by closing the circle of companies from which to combat with certainty the episodes of weakness that the sector can face.
JP Morgan’s expectations reinforce the convincing start-up of the Real Estate Investment Trust and especially Colonial, which has reached 6,000 million euros of market capitalization in these first weeks of the year. An advance that has allowed Merlin to pass for the first time as the most valued Real Estate Investment Trust in the stock market.
Both companies, already consolidated among the 25 largest in the Ibex 35 by capitalization, are receiving the support of analysts in the form of ratification of their target prices at a key moment: before the start of the results presentation season.
JP Morgan’s support comes just a month after Bank of America Merrill Lynch did the same by anticipating that Merlin and Colonial will do well, with neutral and buy recommendations. The analysts of the firm bet above all on Colonial’s portfolio of offices, where it believes that twice the profitability can be achieved than in London.
The circle is closed by Morgan Stanley, who has just raised Colonial’s target price from 12 to 13 euros per share. That is, about 10% above the market price, of the Real Estate Investment Trust, which after an extraordinary 2019 in which it rose about 40% already advances around 3% in January. For its part, Merlin remains one step away from the levels at which the year began.