Goldman Sachs cuts LEG Immobilien price target to €50.20
Goldman Sachs lowered its LEG Immobilien target from €64.50 to €50.20 while keeping a neutral rating, citing higher interest rates and cautious sector sentiment. LEG's H1 2026 like-for-like rents rose 3.7%, adjusted EBITDA margin was 77.8%, and AFFO reached €110.5 million. The company reaffirmed full-year AFFO guidance of €220–240 million and FFO 1 guidance of €475–495 million, with an LTV of 45.5%.
Goldman Sachs reduced its LEG Immobilien target on 7 September 2026, moving from €64.50 to €50.20 and retaining a neutral stance. The analyst pointed to higher interest rates and cautious mood at an industry conference, while still viewing operating trends and rental growth positively. LEG shares closed at €45.26 on Xetra on 25 September 2026, leaving the revised target 10.92% above that close and 22.17% below the prior target.
In H1 2026, LEG reported like-for-like rent growth of 3.70%, an adjusted EBITDA margin of 77.80%, and AFFO of €110.50 million. It reaffirmed full-year AFFO guidance of €220–240 million and FFO 1 guidance of €475–495 million. LTV was 45.50%, down from 47.60% a year earlier.
The revised target may shape how investors view residential landlords amid higher rates. If financing conditions stay tight, LEG’s ability to fund upgrades or new housing could be constrained, potentially affecting tenants through rent and service quality, while savers and pension funds exposed to real estate may see valuation swings. The confirmed guidance offers some reassurance, but sentiment remains sensitive.