Goldman Sachs on Monday raised its recommendation on Gecina from 'neutral' to 'buy', with a price target reduced to 112 euros from the previous 114.6 euros, representing a potential upside of 20%.

In a study of European real estate stocks, the analyst believes that the share's recent underperformance creates a buying opportunity for investors.

Despite solid 2023 annual results, the stock is suffering, in his view, from the market's aversion to the office property sector, irrespective of the quality of the company's fundamentals.

However, Goldman Sachs argues that the current share price offers an attractive entry point for a company that is performing well in a very tight office property market in central Paris.

The research firm forecasts average annual earnings per share (EPS) growth of 8% over the 2023-2026 period.

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