Exane BNP Paribas prefers Colonial over Merlin within Spanish property
** Exane BNP Paribas upgrades Colonial COL.MC to "outperform" from "neutral" on its new development pipeline and names it its top pick within Spanish property
** The brokerage factors in Colonial's new development plans, expecting rental creation of about 71 million euros as it sees an average 7% YoC is "highly achievable"
** Moreover, Exane expects income reversion and stabilization of asset values to continue driving up earnings multiples and investor interest in the stock
** It hikes its PT on Colonial by 25% to 7.5 euros
** Exane also raises its PTon Colonial's rival Merlin Properties MRL.MC by 17% to 13.7 euros, keeping its "outperform" rating
** While Exane remains positive on both names, it says Merlin, trading at about 20% discount to FY 2024 net tangible assets, looks less attractive to Colonial's 38% discount
($1 = 0.9015 euros)
Reporting by Jakub Olesiuk
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