Eurobank Securities has cut its target price on Lamda Development shares as Greece’s second lockdown aimed at containing the pandemic weighs on rental revenues in the first half of the year.
The brokerage reduced its target price on Lamda Development to 9.70 euros per share, from 10 euros previously, maintaining its buy recommendation on the stock.
“We re-assess our outlook on Lamda to include the negative impact of the second lockdown and the reinstated mandatory discounts on rents of pandemic-hit sectors. Under our baseline assessment, the second lockdown will impede our earlier full year 2020 retail EBITDA forecast by another 5.7 million euros," Eurobank Securities said in a note.
"The implied decline in FY20e base rents for the three shopping centres is estimated at c28% yoy, with total retail EBITDA declining by c40% yoy,” it added.
Shares in Lamda Development, which is in charge of the eight billion euro Hellinikon development, were trading at around 6.90 euros on Thursday. The stocks have advanced 25 percent in the last three months, matching gains in the broader market on the Athens bourse.