Goldman Sachs Lowers LEG Immobilien Target to EUR 50.20 Despite Solid Rent Growth

LEG Immobilien's stock saw a modest increase on October 5, 2026, trading at EUR 45.56 on Lang & Schwarz, up 0.53 percent from its prior close of EUR 45.32. This follows Goldman Sachs' decision to lower its price target for the company from EUR 64.50 to EUR 50.20 on September 7, 2026, while maintaining a Neutral rating. The adjustment reflects a cautious outlook due to rising interest rates, though the firm noted that LEG Immobilien's operating trends, particularly rent growth, remained solid.

Second-quarter 2026 figures showed a 1.20 percent year-over-year increase in revenue to EUR 366.20 million, but earnings per share declined slightly to EUR 2.70 from EUR 2.73. Net income held steady at EUR 203.70 million compared to the same period in 2025. Management highlighted a more back-loaded year, with adjusted EBITDA rising 2.30 percent to EUR 368.10 million and adjusted funds from operations reaching EUR 110.50 million. Full-year guidance remains between EUR 220.00 million and EUR 240.00 million.

As of October 5, 2026, LEG Immobilien's market capitalization stood at EUR 3.5 billion, with its stock price 36.41 percent below the yearly high of EUR 71.65. The company is set to release its third-quarter 2026 report on November 12, 2026. The current trading price of EUR 45.56 leaves the stock 9.24 percent below Goldman Sachs' revised target, reflecting the tension between solid operational performance and valuation pressures driven by financing costs and balance-sheet leverage.