Citycon (Hold, TP: EUR6.50) - Potential to overcome the damage
On 26 March Citycon withdrew its 2020 guidance due to Covid-19, stating that the impact of government measures on the business environment and currency movements had been larger than expected. As we expect FX effects and slowdowns related to Covid-19 to hurt many retailers – also long-term – we have cut our EPS forecasts. We do not expect the company to pay dividends in Q2–Q4 2020, and have also cut our long-term DPS forecasts. Despite the steep share price decline in recent weeks, we reiterate our HOLD, having cut our target price to EUR6.5 (10.3).Citycon is an active owner, operator and developer of shopping centers. Co. aims to increase its net yield from shopping centers over the long term through active retail property management and systematic redevelopment efforts. Co. is involved in the day-to-day operations of its shopping centers. As of Dec. 31, 2011, Co. owned a total of 36 shoppings centers: 23 in Finland, 9 in Sweden, 3 in Estonia, and one in Lithuania. Co. also owns 43 other retail properties: 36 in Finland and 7 in Sweden and one undeveloped lot in Finland. Co. manages two commercial shopping centers in Finland.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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