Merlin: Six days on the rise and a potential of over 11%

The Socimi's growth in data centers with low interest rates increases its investment appeal.

The Socimi Merlin rose 1.97% yesterday, to €12.94 . It was its sixth consecutive rise, a period in which it appreciated 4.60% , but it still has a potential for revaluation of 11.12%, to €14.38 , according to the analyst consensus compiled by Bloomberg. The company, which reached an all-time high in August at €13.26, is now approaching this level. It has been on the rise for five months and will soar by 27.36% in 2025.

In an environment of low interest rates and no upside risk, real estate companies are gaining appeal. It is the most recommended company in the sector, with 90.5% buy recommendations, compared to 63.6% for Colonial , which is uncertain about its short-term exposure to France.

Analysts emphasize that Merlin is a company with cash flow visibility and growth potential , thanks to its data center development plan. It currently offers a dividend yield of over 3.5%, and analysts expect annual earnings growth of 15% until 2028.

"The data center investment plan is beginning to bear fruit ," comments Bankinter, highlighting that these are already leading growth in both results and asset valuation.

The value creation that data centers represent for the Socimi is also increasingly tangible for Jefferies analysts, who recommend buying shares and set their target price at €15, above the average valuation . They are confident it will achieve a rental income projection of 17%. The company sees further growth potential thanks to possible EU funding for data centers.

Guillermo Barrio, an analyst at Intermoney, raised his target price for Merlin this week from €12 to €15, specifically because of its data center business, which has led him to raise his forecasts for the coming years. He believes the data center business will enable 10% annual EBITDA growth until 2027.

JPMorgan, Bernstein, Kempen, and CaixaBank are giving Merlin a run above 15 euros.