Merlin accuses CoreWaeave of the effect on the Ibex
The bet on data centers has changed the profile of the real estate Socimi. Merlin, not used to the doses of volatility typical of technology companies, has recently felt the turbulence in the AI rally, and in particular, its exposure to the American CoreWeave.
Merlin Properties' stock has plummeted 25% in the last four months, with its shares currently trading at 11.66 euros, down from 15.60 euros in June. The company's growing exposure to AI-related themes, particularly through its data center business with US-based CoreWeave, has contributed to the decline. CoreWeave's stock has dropped 50% in the last six months, with an 11.91% plunge on Friday, affecting Merlin's stock.
Despite this, analysts at Jefferies have issued a "buy" recommendation for Merlin, citing the company's plans to limit exposure to a single tenant and contractual safeguards in place with CoreWeave. Jefferies sets a target price of 16 euros per share, representing a 37% potential upside.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
