Finally, SOCIMI will continue to benefit from their special tax regime which allows them to pay corporate tax at 1% in Spain. After this situation, analysts, instead of abandoning their confidence in national companies, on the contrary increased it. So, although it continues to be a hold on the stock market, Colonial deserves its best recommendation since January.
The company led by Pere Viñolas is ranked 22nd best recommendation on the Ibex 35, after climbing up to six positions in a single week, leaving the lower part of The Ibex League (the handset elEconomista.es which is prepared with the averages of the recommendations of Bloomberg and FactSet). It is its best position in the tool since October 2023when he occupied stage 21.
The JB Capital Markets team was the last to raise its buy recommendation and, with it, 55% of analysts advise taking positions in real estate, compared to the hold they previously recommended.
Optimism towards Colonial is not only seen in this poster for its actions. In recent weeks, the price target of its stocks has also improved significantly. Currently, the consensus of analysts collected by FactSet values SOCIMI on the stock market at 7 euros per share, compared to 6.95 euros at the end of October. This valuation is also the highest since the end of June. The last time the Catalan company was listed at 7 euros was in October 2022. Up to this level, the value has an upside potential of 27%.
The announcement of the possible suspension of this special regime led investors to unwind their positions in the company, which lost 5% in a single session. It was the second biggest single-day drop in 2024. “It should be remembered that Colonial made a preliminary estimate of a negative impact on EPS of between -1% and -2% in the case of a total elimination of the special tax regime for SOCIMI”, they recall de Renta 4.
Finally, the company will continue to benefit from this legislation and, in its latest results, raised its EPS outlook for 2024 from 0-3-0.32 euros per share to 0.32-0.35 euros.
Since November 12, the company has managed to rebound by nearly 7% and erase this scare. However, during the year, Colonial continues to leave more than 15% of its value on the Spanish stock market. “Laddress attributed this increase to improved rental income and reduced finance charges,” Barclays said.
These falls, however, left his stock trading with you.n 43% discount on the net value of your assets (NAV). This figure (revised every six months) was established by the company during the latest half-year results at 9.66 euros per share, which represents a further contraction compared to the 10 euros set at the end of the 2023 financial year and against 10.88 euros for the same period of the previous year.
