Euronext Brussels: Sell the flare
Forget ‘buy the dip’. In this sluggish market, ‘sell the flare’ is the new mantra.
History is against anyone who hoped that September would be another month after a bar. October is a notoriously bad stock market as the calendar month of the black Mondays in 1929 and 1987.
The new month (the new quarter) is only four trading days young and sustainable the Bel20 already 100 points. Positive days become manic due to falling targets. A recovery day on Tuesday will receive a sharp sell-off on Wednesday. With a loss of 1.9 percent to 4,070 points, the star index has its worst day since June 17.
The collateralisation stems from a rise in European long-term interest rates. Eurozone 10-year bond yields hit their highest level since June. trailing energy, with the gas price pre-pricing, fueling fears of better and faster policy tightening by central banks.
Heavyweight AB InBev
is experiencing its worst day since September 2 with a loss of 2.5 percent. Three international stock exchange houses lower their price targets for the Leuven beer giant. Jefferies applied from 75 to 73 euros with a buy recommendation. JP Morgan processes from 48 to 46 euros with a sell advice. Credit from 56 to 53 euros with a neutral advice.
Elijah
holds up better than the index. However, the power grid operator is poorer in buying advice. Beurshuis Kepler Cheuvreux recommends a break and adapted advice for the Belgian electricity network operator from buying to holding. ‘We like the robustness of the business model. A performance in Belgium and Germany form a perfect defensive mix’, anoints Kepler. Nevertheless, the stock exchange finds the current price levels more than sufficient. “We think it’s time for some profit taking and recommend waiting for a better entry point.”
Kepler gives a price target of 110 euros (previously 108 euros). Current income per share by 6 percent for the current trend of a stronger flow than the end of income.
On a risk-averse day, a safe haven like Elia can still offer resistance. The highly performing ‘only’ 1 percent to 101.9 euros.
Broad market
Two real estate companies are putting themselves in the spotlight on the broad market.
The De Kaesteker family transfers 27 properties via the Shopinvest vehicle to Retail Estates
. In exchange, the family receives 560,689 shares at an entry price of 63.95 euros. That is a discount of 1.6 percent compared to Tuesday’s closing price.
As a result of this transaction – a capital increase of 35.9 million euros via the contribution in kind – Shopinvest’s interest in Retail Estates increases above the threshold of 3 percent.
The De Kaesteker family became rich through the E5 fashion empire that it sold in 2019. ‘De Kaesteker is a pioneer in retail warehouses’, Retail Estates says in a press release.
“We are positive about the financing of the deal in equities,” say analysts Wido Jongman and Wim Lewi, recalling that Retail Estates has a debt ratio (debt to assets) of 50.76 percent. ‘We suspect that most of the buildings have been let to fashion chain E5. We are less enthusiastic about that retail category’. Fashion retail contributed 17.6 percent of rental income in the previous Retail Estates publication.
Retail Estates 1.5 percent to 64 euros.
Xior
is an extraordinary riser on this red day. Degroof Petercam combines a 12-page report about the kot owner. relevant analyst Inna Maslova set the price target from 48.5 to 54.5 percent. They lead the risk factor of the pandemic in the student housing market. Her model takes into account a large capital increase next year of about 250 million euros.
‘Allow Xior to continue the pace of around EUR 300 million in portfolio growth per year without the need for fresh capital,’ Maslova writes. From 2024, it expects a two-year capital increase of 175 million euros. Her predictions are based on a portfolio growth of 88 percent to 3 billion euros by 2024.
Recent studies cited by Maslova show a shortage of student housing in the Netherlands. To meet the demand, the number of units would have to double every two to three years. In Flanders, too, approximately 95,000 extra rooms will be needed due to the increasing number of students and the further internationalization of universities.
Nevertheless, Maslova believes that there is already sufficient growth in the price. She derived her higher price target from a sustainable hold rating. Xior gains 0.5 percent to 50.3 euros.