BUZZ-Handelsbanken sees upside from Swedish real estate shares underperformance

Reuters
2024-12-12
BUZZ-Handelsbanken sees upside from Swedish real estate shares underperformance

** Handelsbanken upgrades six Swedish real estate companies to "buy" from "hold" as it sees "plenty" of upside from the sector's share price underperformance

** It says the sector decline of 16% since October 2024 has been unwarranted and mostly affected by volatile US-rates

** "Lower rates [in Sweden], an improving macro economy and more jobs all fit late-cyclical real estate", it says

** It adds that residential property companies should offer an improved risk/reward ratio due to expected rent indexation in 2025 and 2026

** It lists Dios Catena Hufvudstaden, Platzer Atrium Ljungberg and Stendorren STEFb.ST as its preferred stocks

** High office vacancies in Stockholm bring uncertainty to Fabege Castellum Atrium Ljungberg ATRLJb.ST and Hufvudstaden HUFVa.ST

** It flags however that Hufvudstaden has shown relative operational strength

COMPANY

NEW RATING

OLD RATING

NEW TP

OLD TP

Atrium Ljungberg

BUY

HOLD

no change

SEK 319

Platzer

BUY

HOLD

no change

SEK 136

Sagax

BUY

HOLD

no change

SEK 355

NP3

BUY

HOLD

SEK 355

SEK 325

Heba

BUY

HOLD

SEK 47

SEK 46

John Mattson

BUY

HOLD

no change

SEK 86

(Reporting by Anna Chaberska)

((Anna.chaberska@thomsonreuters.com))

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