AlphaValue/Baader Europe Adjusts Castellum Price Target Amid Divestment, Share Buyback Programs; Forecasts Updated

06:08 AM EDT, 07/28/2026 (MT Newswires) -- AlphaValue/Baader Europe raised its price target for Castellum (CAST.ST), noting that the faster-than-expected progress of the Swedish property company's divestment program totaling 24 billion kronor denotes a "clear success" for management. "However, the assets being divested are the most liquid ones, featuring the longest contract terms, and thus offering the greatest security for buyers. Consequently, the remaining portfolio will essentially consist of riskier assets. The upward revision of our target price is therefore insufficient to warrant a shift to a positive rating," the research firm said Monday, lifting the reduce-rated stock's price target to 125 kronor from 118 kronor. "As for the share price, it is naturally supported by the share buyback programme running through 2026. Once the portfolio scope has stabilised and the SBB is complete, one will need to observe how the share price performs, particularly in response to operational metrics, which we expect to remain unfavourable for the Swedish commercial real estate sector." Subsequently, analysts slashed their EPS estimates for 2026 and 2027 by 21.5% and 18.2%, respectively, to 8.09 kronor and 8.50 kronor, mainly due to the combined effect of the "large" divestment and share buyback programs.