Buy signal on Nexity (NXI-FR)
Nexity is a €2.15 Bn market cap company and a leading integrated player in French real estate, which covers the full range of real estate sales and services offered to individuals, businesses, institutional investors, and local communities, accompanying them throughout the real estate process.
New home sales (89% of sales) is the main segment. The group is also involved in subdividing building lots, and offers supply of real estate and franchise management services: residential and office property management, student residence management, consulting and real estate transaction service…The sales of commercial real estate properties (11%) is the second pillar including sales of office buildings, skyscrapers, commercial complexes, logistics platforms, businesses, and hotels;
France accounts for 99.5% of net sales.
Ater two years of decline, sales and margins are expected to recover from 2021 along the cycle. In early January, Nexity raised its FY2020 guidance due to better than expected Q4 performance, and less than expected impact of the covid-19 on its business.
Short term catalyst: Cyclical recovery.
This signal looks mainly company specific.