Argan shares rose on the Paris Bourse on Friday, buoyed by the publication of annual results deemed solid by analysts.

At around 9:30 a.m., the French property company's shares gained 1.4% in a Paris market up by around 0.4%, bringing its gains over the last three months to over 30%.

The company, which specializes in the development and rental of premium warehouses, last night reported rental income up 11% to 184 million euros last year, compared with a target of 182 million.

Its recurring net income, group share, also came in better than expected, up 5% to 126 million euros, against an initial forecast of 124 million.

In a reaction note, analysts at Oddo BHF, who have an 'outperform' rating on the stock with a target price of 92 euros, refer to a 'slightly above-expectations and encouraging publication'.

In its press release, Argan explains that its "excellent" financial performance in 2023 enables it to set ambitious 2024 targets.

For 2024, the company says it is aiming for rental income up 7% to 197 million euros, with recurring net income, group share of 133 million euros, up 6%.

The teams at Degroof Petercam, who already had a buy recommendation on the stock, which they considered to be one of their 'top picks' within the sector (preferred stock), indicated this morning that they had now included it on their preference list.

Despite a high level of debt, Argan's prospects remain promising thanks to a strong development pipeline and well-managed debt (95% fixed-rate with an average maturity of 5.8 years)", said the Belgian investment bank.

After increasing its 2023 dividend by 5% to 3.15 euros, the property company plans to raise it by a further 5% this year, to 3.30 euros per share.

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