Affärsvärlden gives a neutral recommendation on property company Wallenstam in an analysis on Friday.
With interest rates fixed for long periods at low levels, Wallenstam is in an excellent position to cope with the prevailing interest-rate environment. However, it is difficult to envisage any rising prices for residential properties, and this could make it difficult to grow net asset value, the newspaper assesses.
“The stock is valued at around 19 times the company’s reported earnings, or 24 times if one subtracts a rough estimate of maintenance needs of SEK 185 per square metre. Regardless of which of these measures one prefers, neither net asset value nor earnings power is sufficiently compelling for a buy recommendation,” Affärsvärlden writes, giving a neutral recommendation.
