We have initiated coverage of the German Aareal Bank with a price target of €39 per share and an ADD recommendation.
Aareal Bank is a mortgage bank with a business focus on commercial real estate and services to commercial real estate customers.
Positive items are:
The property market in Germany is booming. The vdp property price index in Germany has increased every year since 2010 for both residential properties and commercial properties. The index increased by 5.0% for FY2015.
Aareal Ban ....
