Oil prices turn lower as Bessent says U.S. may have Iran deal "today or tomorrow"
Investing.com - Jefferies downgraded Klepierre SA (EPA:LOIM) to Hold from Buy, citing strong share price outperformance and limited near-term catalysts.
The firm maintained its €40 price target while raising its 2026 earnings per share estimate to €2.83 from €2.77-2.80, above the company’s current guidance range.
The stock has delivered a 63% share price return and an 86% total shareholder return over the past two years, outperforming the EPRA index by 55%. Klepierre now trades at 13.7 times price-to-net cash flow for 2026, in line with the European real estate sector at 13.4 times and at a premium to retail peers at 11.2 times.
Retail sales growth has been broad-based across regions, with Southern Europe performing above average and the Nordics positive but below average. The company sees potential to push its occupancy cost ratio toward 15% from 12.5% last year, though achieving this will take time given a six-year average lease term.
Jefferies said the next phase of outperformance will require management to demonstrate its ability to deploy capital through acquisitions. The firm estimates Klepierre has €1.5 billion in firepower for bolt-on acquisitions, with the EPRA loan-to-value ratio decreasing 130 basis points to 39.6% and net debt to EBITDA falling to 6.6 times from 6.7 times in fiscal 2025.
Ancillary revenues from specialty leasing, retail media and mobility income now represent approximately 10% of net rental income. Management targets continued double-digit growth in these areas over the coming years, providing an additional source of earnings growth beyond traditional rental income.
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