AEDAS Homes kicks off the year as a top analyst pick among Spanish Small Caps

AEDAS Homes kicks off the year as a top analyst pick among Spanish Small Caps

• Over 80% of these experts recommend buying shares in AEDAS Homes
• The stock is currently trading at a significant discount with respect to the consensus average target price

AEDAS Homes, a leading Spanish homebuilder, started off the year among the top three Spanish small-cap stocks recommended by analysts at leading investment banks, only behind Prosegur Cash, a provider of cash management services, and MásMóvil, a telecommunications operator, according to Bloomberg.

Of the 12 experts who follow the company and the performance of its share, only two have issued a hold recommendation, and none have issued a recommendation to sell, due to the excellent visibility the residential developer has over its Business Plan in the coming years and the sweet spot the Spanish real estate sector is currently in, among other factors.

Citi, Goldman Sachs, Santander and UBS are among the banks that recommend buying shares in AEDAS Homes.

Also of relevance is the significant discount at which the homebuilder’s share is currently trading, around 23 euros per share, a figure that is well below the average target price of 33.74 euros given by analysts’ consensus, making AEDAS Homes an attractive investment opportunity.

In their reports, these analysts indicate a shared positive outlook on the residential cycle in 2019, as forecasts indicate that both prices and new construction starts will increase.