First Berlin Maintains Buy Rating for Aroundtown SA, Adjusts Price Target

First Berlin Equity Research GmbH recently released a research update on Aroundtown SA, affirming its BUY recommendation. However, the price target has been adjusted downward from €4.40 to €4.10. This adjustment follows an analysis by Ellis Acklin, reflecting recent operational and financial developments.

The third-quarter results for Aroundtown were mostly aligned with expectations, positioning the company well to meet its full-year targets for 2025. During September, rental growth of 3.1% was noted, driven by strong performance in its hotel and residential segments. The office sector remains stable but faces challenges due to sluggish economic activity in Germany.

Aroundtown's management is taking proactive steps to bolster resilience in its portfolio by converting office spaces into serviced apartments and data centers. With a 42% upside potential, the BUY rating on Aroundtown remains unchanged.