‘High Quality Compounder’ – Bank of America Securities bets on this real estate play for 24% upside

'High Quality Compounder' - Bank of America Securities bets on this real estate play for 24% upside


Shares of Phoenix Mills Ltd. opened 1% higher on Thursday, September 17, after global brokerage Bank of America (BoFA) Securities initiated coverage on the stock with a ‘Buy’ recommendation and a price target of ₹2,300.

The target implies a potential upside of around 24% from Phoenix Mills’ closing price of ₹1,860 on Wednesday.

BoFA Securities views Phoenix Mills as a high-quality compounder with a healthy balance sheet.

The brokerage expects an uptick in occupancy, mark-to-market rental growth and the addition of new malls and office assets to drive a 20% compound annual growth rate (CAGR) in EBITDA over FY26-29E, with growth expected to accelerate each year.

BoFA Securities also sees a long runway for retail capacity addition in India, with Phoenix Mills expected to remain active in acquiring new land.

Of the 22 analysts covering Phoenix Mills, 19 have a ‘Buy’ rating, while three have a ‘Sell’ recommendation on the stock.

Shares of Phoenix Mills ended 1.44% higher at ₹1,860 on Wednesday. The stock is broadly flat on a year-to-date basis.



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