SB1 Markets downgrades its recommendation for the property company Entra to Neutral from Buy and cuts its price target to NOK 100 from NOK 120. The bank points to higher interest rates, the risk of negative property valuations and increased selling pressure from major shareholders.
Ahead of the third quarter, SB1’s forecasts for funds from operations and cash flow per share are 7 percent below consensus.
Net letting risks turning negative and property values are expected to decline by 1.4 percent.
Castellum’s potential sale of its 37 percent stake is seen as an additional risk.
The price target corresponds to 15 times cash flow per share for 2027.
