On Wednesday, Kepler Cheuvreux initiated coverage on Nexity (EPA:NEXI) SA (NXI:FP), a prominent player in the French real estate market, assigning a Hold rating to the company's shares.
The research firm has set a price target of EUR12.90 for Nexity stock, indicating a modest 6% potential upside from its current level.
The decision to start coverage with a Hold rating reflects a balanced perspective from Kepler Cheuvreux.
The firm acknowledges the positive structural trends in the French residential market, such as the chronic undersupply of housing coupled with an increasing number of households. These fundamental factors are seen as supportive of Nexity's business in the long term.
However, Kepler Cheuvreux also notes potential headwinds that could impact Nexity in the near term.
The analysts point to possible political and macroeconomic instability that may postpone the cyclical recovery of the market until the second half of 2026.
The firm specifically cites the upcoming local elections in France, scheduled for March 2026, which historically tend to coincide with a reduction in permit allocations, potentially slowing down the real estate sector's momentum.
Moreover, there is growing uncertainty surrounding Nexity's operating margin, which adds another layer of caution to Kepler Cheuvreux's outlook. The firm's analysts expressed this concern in their commentary, balancing the constructive view against these risks.
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