SB1 Markets reiterates Neutral for property company Corem and cuts its price target to SEK 2.3 from SEK 2.6.
Profit from property management in the third quarter exceeded the forecast by 15 percent, mainly due to higher financial income. At the same time, the vacancy rate rose to 17.9 percent.
SB1 cuts its cash flow forecasts for 2027–2028 by 8 and 21 percent, respectively. High leverage and weak interest coverage limit the scope for share buybacks without significant property sales. Share buybacks fell sharply to SEK 16 million from SEK 382 million in the second quarter.
“The high operational and financial risk, concentrated ownership and unusual capital allocation mean that we continue to remain on the sidelines,” the research house writes.
