Analysts have trimmed their average price target on LEG Immobilien by around €7 to €72, citing slightly weaker revenue and profit margin assumptions, as well as a modestly higher future P/E multiple in their models.
Analyst Commentary
Recent Street research has leaned cautious, with several bearish analysts cutting their price targets on LEG Immobilien and highlighting pressure on the investment case. The latest moves cluster around the low €70s, with one major house setting a target of €72 and maintaining an Underweight stance.
These revisions point to a more reserved view on how much investors may be willing to pay for the shares, especially as expectations around revenue, profit margins and achievable valuation multiples are revisited.
Bearish Takeaways
- Bearish analysts have reduced price targets by amounts ranging from around €2 to €14, which signals rising concern around execution risks and the headroom for valuation upside.
- The Underweight rating at €72 suggests some see limited upside at current levels, with questions around whether earnings can support higher P/E multiples over time.
- The clustering of lower targets implies a more cautious consensus on growth and profitability, with analysts building in tighter margin assumptions and less generous valuation frameworks.
- Successive downward adjustments within a short time frame highlight that risks to the story, such as slower operational progress or weaker-than-expected revenue trends, are front of mind for the more cautious end of the market.
What's in the News
- LEG Immobilien SE declared an annual dividend of €2.92 per share, with payment scheduled for June 1, 2026, ex date on May 28, 2026, and record date on May 29, 2026 (Key Developments).
Valuation Changes
- Fair Value: Model fair value is unchanged at €59.8 per share, indicating no adjustment to the central valuation output.
- Discount Rate: The discount rate is effectively flat at 10.19%, with only a minimal technical adjustment.
- Revenue Growth: Long term revenue growth assumptions now reflect a 15.06% decline instead of a 14.81% decline, pointing to slightly weaker top line expectations in the model.
- Net Profit Margin: Net profit margin has been trimmed from 61.58% to 60.98%, indicating a small reduction in expected profitability.
- Future P/E: The assumed future P/E multiple has risen slightly from 10.42x to 10.61x, suggesting a modestly higher valuation multiple applied to projected earnings.
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