Covivio Shares Drop 4% Despite Raised Target to 70 Euros by Kempen
Covivio's stock experienced a significant decline this Tuesday, March 3, falling 4.07% to 57.75 euros mid-session, after closing at 60.20 euros the previous day. This drop is part of a broader correction across European markets, influenced by escalating military tensions in the Middle East. The listed real estate company has now seen a decline of over 5% in the past seven days.
Kempen Raises Target Price Amidst Stock Downturn
In the midst of a downturn for the stock, Kempen bank raised its target price on Covivio from 65 to 70 euros this Tuesday, while maintaining a buy recommendation. At 57.75 euros, the current price thus shows a gap of more than 21% compared to this new target, suggesting significant revaluation potential according to the analyst. This increase comes as the publication of the first quarter 2026 revenue is expected on March 15, an event that could provide new elements for assessing the operational dynamics of the real estate firm. Over a longer horizon, Covivio has maintained an annual growth of nearly 9.8%, and the stock is still up 3.77% over three months, despite the recent correction. The next event on the calendar is the general meeting scheduled for April 16.
Current Drop Brings Covivio Close to Its 20-Day Moving Average
Today's drop brings Covivio's share price close to its immediate vicinity of its 20-day moving average, which stands at 57.03 euros, a level that could represent a first technical plateau to watch. However, this moving average remains above the MM50 (55.54 euros) and MM200 (55.12 euros), indicating that a medium-term bullish trend is still intact despite the session's sharp decline. The RSI, at 71, signals a relative overbought zone, making the current consolidation technically coherent after the positive dynamics of recent weeks. The major support threshold is identifiable at 52.40 euros, about 9% below the current price. More broadly, today's decline should be viewed in the context of a generalized correction in European stock markets, which are down between 1 and 3% due to geopolitical tensions in the Middle East and the surge in energy prices, with Brent crude surpassing the $80 per barrel mark.
