Jefferies Downgrades Mercialys to Hold

Jefferies cut Mercialys rating from Buy to Hold, setting price target €13.50, 5% above last close €12.84.
Q1 like-for-like rental growth slowed to 2.0% YoY, down from 2.8% FY25, with vacancy rate rising to 2.4%.
Mercialys acquired Toulouse Fenouillet retail park for €18 million, yielding ~8% acquisition yield, and repaid €300 million bond maturing Feb.
Jefferies lifted 2026 EPS to €1.30, cut financial expense to €92 million, and noted stock trades at 9.9x P/FFO, 26% below tangible asset.