RBC on Monday downgraded its recommendation on the stock of commercial real estate group Klépierre to 'underperform' from 'in line with sector performance'.

According to Royal Bank of Canada, Klépierre's risk/reward profile is now 'less attractive' than those of other players in its sector.

'We believe that Klépierre benefits from a sound strategy and good operational execution', says RBC in its note.

However, after outperforming the rest of the European real estate sector by 45% over the past year, the stock is trading on multiples that are more demanding than its five-year historical average for the sector", explains the Canadian bank.

RBC adds that the slowdown in economic growth, combined with rising interest rates, raises the risk of a downward revision of earnings expectations for the shopping center operator over the next few years.

Its price target has nevertheless been revised upwards, to 25 euros.

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