Aroundtown shares dip after Berenberg downgrades property investor
By Scott Kanowsky
Investing.com -- Shares in Aroundtown SA (ETR: AT1 ) fell on Tuesday after the Luxembourg-based real estate firm saw its target price cut by analysts at Berenberg to €3 from €3.5.
The analysts also slashed their rating of the group to hold from buy, flagging caution around the landlord's perpetual bonds - a type of fixed income security that does not have a maturity date.
Although they believe Aroundtown's operations are "fundamentally sound," the Berenberg analysts said that the share price will not recover until bond markets allow the company to issue perpetual notes at "more reasonable coupons."
The Berenberg downgrade also comes after the property investment company announced on Monday that it repurchased nearly 2 million of its own shares at a weighted average price of about €2.5.
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