Morgan Stanley has downgraded Icade to Equal Weight from Overweight, citing a lack of near-term catalysts and a less compelling shareholder return profile following the company's latest results. The broker also slashed its price target to €25 from €30. Analyst Ana Escalante highlighted that while Icade's stock appears inexpensive at distressed valuation levels, the probability of distress is very low, offering some downside protection, hence the neutral rating.

A key factor behind the downgrade is the slower-than-expected disposal of Icade's healthcare business. Management reiterated plans to gradually exit the segment through 2024–28 but acknowledged the unit generates significant financial returns, supporting an opportunistic disposal strategy, prompting Morgan Stanley to delay its expected completion timeline. Escalante now forecasts a dividend yield below 8%, which she believes will not be sufficient to convince investors that they are being remunerated for Icade's intrinsic business risk.

The analyst argued that although balance sheet repair represents a bear case, any reduction in perceived distress could still support some re-rating. Still, the absence of clear catalysts keeps the analyst cautious. The shares trade at roughly a 60% discount to net asset value, but Escalante said this continues to reflect market concerns about balance-sheet stress. , Escalante expects further healthcare disposals to take time, with additional asset sales likely stretching into 2027–28 and beyond, and flagged uncertainty around potential AI-driven changes to office demand.