VONOY - Vonovia: FOMO May Happen Quicker Than You Expect

2024-04-21 05:35:34 ET

Summary

• Vonovia SE is currently trading at a significant discount to its book value, presenting a distressed valuation opportunity.
• The rise in interest rates in the Eurozone has had a negative impact on Vonovia, as higher funding costs and a deflated property market have affected its cash flow and book value.
• However, there are positive factors in play, such as expected rental growth and a shortage of properties in Germany, which could drive future growth for Vonovia.
• The ingredients are there for FOMO and a melt-up in the share price.

Vonovia SE (VONOY) (VNNVF) is one of my top conviction buys for 2024. It is currently trading at a ~50% discount to its book value, which is certainly a distressed valuation for a high-quality German residential property company. You may refer to my previous articles on Vonovia, including this one that discusses the bear case....

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