On Thursday, JPMorgan reiterated its Overweight rating and EUR19.70 price target on CTP NV, a company listed on the Euronext Amsterdam stock exchange under the ticker CTPNV:NA. The firm's stance remains positive following a recent Roadshow with CTP management in London.
The management team at CTP NV confirmed their growth strategy, highlighting that 2 million square meters of projects are currently under construction, with a substantial land bank of 25 million square meters. They also shared insights into their Data Centre operations, where the company maintains a high standard due to its yield on cost (YoC) exceeding 10%.
CTP NV is considering various options for its capital allocation plans, including the potential to raise equity if there is a desire to expedite their development program. However, this would not be necessary for their existing pipeline of projects.
JPMorgan has included CTP in its top sector picks, citing the company's leading earnings per share (EPS) and net asset value (NAV) growth rates, projected at 9% and 13% per annum over a three-year period, respectively.
The analyst firm attributes the growth primarily to the company's development activities and foresees a prolonged period of success for CTP's shares. This optimism is further bolstered by strong structural tailwinds specific to the Central and Eastern European (CEE) region. Looking ahead, JPMorgan anticipates sharing additional insights at the upcoming Capital Markets Day scheduled for September 25-26.
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