Vonovia Stock: Share Price Drops on Deutsche Wohnen Deal

Vonovia's stock experienced a significant decline on Monday, falling 3.64% to €30.10, marking its lowest point in three weeks. The downturn came as the company unveiled its compensation terms for remaining Deutsche Wohnen shareholders as part of a planned domination and profit transfer agreement. Under the proposed terms, Deutsche Wohnen shareholders would receive 0.7947 Vonovia shares for each of their existing shares, along with an annual compensation payment of €1.22. The announcement has triggered mixed reactions in the market, with particular attention focused on the compensation payment, which fell below market expectations.

Analyst Outlook Remains Positive

Despite the current market turbulence, financial analysts maintain an optimistic stance on Vonovia's prospects. Market observers have set an average price target of €34.23, suggesting substantial upside potential from current trading levels. Additionally, analysts project an increase in dividend payments to €1.18 per share for the current year, representing a notable increase from the previous year's distribution of €0.90.