Jefferies has raised its recommendation on Covivio from 'hold' to 'buy', with a price target raised from 48 to 53 euros, noting that despite the sale of 1.5 billion euros of assets over 2023-24, it will be able to increase its adjusted EPRA earnings by 5% over this period.

Following a roadshow with management, the broker believes that the property company has 'tackled its debt issues very effectively, thanks to its diversified portfolio of assets and geographical areas'.

After a significant underperformance over the past year, the share is now trading at 9.5 times FFO 2024, and at a 49% discount to its EPRA net tangible assets 2024 per share", he adds.

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