The real estate analyst team of Petercam is advising investors with Eurocommercial Property (ECP) shares to switch to Rodamco Europe shares. According to Petercam Rodamco Europe is more attractively priced and a bigger growth in the profit per share can be expected over the coming years than for ECP.
According to Petercam the Rodamco Europe shares are currently being traded with a discount of 3% to the quotation, while the ECP shares have a premium of 9% and are therefore too expensive. The real estate analysts have calculated through a total return analysis that the ‘fair value’ of Rodamco Europe is € 47,87; meaning a 3% upward potential. For ECP Petercam calculated a fair value of € 22,77 which is 5% below the current quotation.
Within the segment of Dutch listed funds Rodamco Europe has a larger share on the Dutch market (38%) than ECP (9%). Despite Petercam’s preference for real estate companies with a low exposure on the Dutch market, they think that Rodamco Europe has a much stronger balance than ECP. Also Petercam is expecting a growth of profit per share of 16% for the coming three years for Rodamcoe Europe while ECP won’t grow more than 10%.