UPDATE: Stifel Nicolaus Increases PT to $20 on General Growth Properties; Rising NOI
Stifel Nicolaus says in a recent note it is raising its price target from $18 to $20 on Buy-rated General Growth Properties (NYSE: GGP).
Stifel Nicolaus notes, "GGP's high productivity mall portfolio is well-positioned to generate above average internal growth for the next few years, in our view. Retailer demands for high quality mall space are growing and GGP should be able to capitalize on the opportunity of converting 620 bps of short term leases into longer term leases at higher rents. Same store sales are growing by double digits, to $525 psf, and leasing leverage is moving farther in the landlord's favor. GGP increased FFO guidance to $0.92 to $0.96 from previous $0.90 to $0.94 range, likely due to lower interest expense and stronger fundamentals."
GGP closed at $17.92 on Tuesday.
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