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Citi ‘blesses’ Spain’s Aedas Homes: potential of 35% and recommendation to buy shares

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Analysts at the US bank expect an adjusted gross operating profit (Ebitda) to grow to €432 million from the €5 million in 2017.
Citi gives the approval to Aedas. The financial services company has begun the coverage of Aedas Homes with purchase recommendation and target price of €39.10, which represents a potential revaluation for the action of 35% compared to the end of Monday, as reported by the group.
Citi analysts, who have prepared the recommendation report on the value, consider that Aedas Homes is well positioned to generate profit growth and cash flow. They emphasize that the group has chosen some of the best soils to form a land bank of more than 13,000 units with a net asset value of €1,350 million.
Citi estimates that tailwinds favorable to the economic situation and the housing market offer good support to increase deliveries in the coming years until 2023 and generate higher margins, maximizing returns.
Analysts at the US bank expect an adjusted gross operating profit (Ebitda) to grow to €432 million from €5 million in 2017, with an annualized growth of 110%.

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