Broker tips: TriTax EuroBox, Ascential
Tritax EuroBox's discount to its assets is unjustified relative to its peers' large premiums, Royal Bank of Canada said as it initiated coverage with an 'outperform' rating.
"EuroBox offers high rent visibility from its inflation-linked leases on large well-located European logistics property while asset management initiatives should help supplement rent growth," RBC analyst Saravana Bala wrote in a note to clients.
Leveraged investment into the warehouse operator's €550m (£473m) pipeline, lower cost of debt and a declining cost ratio mean EuroBox should generate a 13% underlying earnings per share compound annual growth rate (CAGR) over three years, Bala said. Development activity and further yield compression will help drive a 9% CAGR in net asset value over three years, he added.
Analysts at Berenberg upgraded business-to-business media firm Ascential from 'hold' to 'buy' on Thursday following "an encouraging turn of events".
Berenberg stated that it had previously felt that the investment case for Ascential had been "somewhat dominated: by the wait for a return of events.
However, Berenberg's analysts said that when updating their numbers, it was actually Ascential's progress in its business transition that caught their attention.
"While our earnings estimates fall due to the sale of the company's Built Environment & Policy (BEP) segment, Ascential now garners over 60% of its sales from its digital subscription and platforms business," said Berenberg.
The German bank, which hiked its target price on the stock from 240.0p to 485.0p, also stated that greater visibility on returning events had contributed to 20% underlying earnings growth from the end of 2021 through to 2023.