Eurobank ups target price on Lamda shares as Ellinikon lurches forward

Eurobank Equities Research has upped its target price on shares in Lamda Development, the company behind the Ellinikon project in Athens, to 10.30 euros per share, implying an upside of some 47 percent from current levels.

The Athens-based brokerage kept its buy rating on the Lamda stock which previously had a target price of 9.70 euros per share.

Eurobank Securities said in a note that “following the signed share transfer agreement and the payment of the first instalment for the land ownership rights in June 2021, Lamda has officially started the Ellinikon project development.”

“The project is broken into 2 phases, with the first encompassing projects in high-end tourism, residential development, shopping malls and commercial areas for offices (along with necessary infrastructure works and part of the metropolitan park area) and the second phase dedicated mainly to mainstream residencies, a business district and education/leisure,” it said.

We expect Lamda shares to move higher in the valuation spectrum as project implementation rolls over and execution quells investor concerns, the note added.

Shares in Lamda, which has a market capitalization of 1.2 billion euros, closed at 6.97 euros yesterday. In the last six months, Lamda shares have dipped some 15 percent on the Athens bourse, underperforming gains of some 5 percent in the broader market.