Earlier this week, SB1 Markets conducted a comprehensive review of the real estate sector, initiating coverage on nine Swedish companies. This brings their total Nordic real estate coverage to 33 stocks, consisting of 22 Buy ratings and 11 Neutral ratings. No stocks currently carry a Sell recommendation.

"This reflects our positive sector outlook, supported by low valuations," SB1 noted.

The top picks within the sector are Balder, NP3, and Sagax. Among smaller-cap real estate firms, the preferred names are Intea, Logistea, and SLP.

"We maintain a positive sector view and hold no Sell recommendations because: 1) much of the negative sentiment appears priced in, as reflected in sector valuations that have dropped to levels historically seen only during crises; and 2) there is a limited number of companies where we see significant balance sheet risks that are not already reflected in deep NAV discounts. We maintain a cautious stance on the residential segment and the Stockholm office market, areas where we remain selective and continue to hold a majority of Neutral recommendations," the analysis stated.

The list below details the companies where SB1 has initiated coverage.

CompanyRecommendationTarget Price, SEK
BrinovaNeutral314
CoremNeutral3.7
FastpartnerBuy50
KlaraboBuy17
LogistriBuy18
InteaBuy85
StudentbostäderNeutral1.7
SveafastigheterNeutral38
TrianonNeutral19