On Tuesday, AlphaValue lowered its price target for Mercialys from 11.8 to 11.2 euros, while renewing its buy recommendation on the share.

In a note published in the afternoon, the research firm explains that it fears that rising financial expenses will eventually penalize the retail real estate group's earnings from operations (FFO) by 2026.

However, the Paris-based consultancy notes that the company's net financial debt (LTV) ratio, which stood at 34% at the end of 2022, seems much more manageable than that of some of its competitors.

AlphaValue considers this factor to be at the heart of its investment theory for the stock, which it is not yet ready to give a speculative premium to, given its free float, which is flirting with 100%.

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