Analyst firm Jefferies has taken a closer look at the European residential real estate sector, launching coverage on Swedish property companies Balder and Trianon, as well as Finnish firm Kojamo.
"After several turbulent years, the European housing sector finds itself at a pivotal juncture. Robust underlying demand, coupled with limited new supply, should support rental increases and strengthen asset values. With refinancing risks largely priced in, the segment's key catalysts will be the ability to revive cash flow growth and reverse share price trends," Jefferies writes.
Trianon and Kojamo both receive initial buy recommendations, with target prices set at SEK 26 and EUR 12.50, respectively.
Balder, meanwhile, is rated hold in the new coverage, with a target price of SEK 72.
German companies Grand City and Vonovia are both upgraded to buy from hold.
Jefferies also reiterates its buy recommendations on German firms LEG Immobilien and TAG Immobilien.
