UPDATE: Imperial Capital Downgrades Simon Property Group to In-Line, Lowers PT

In a report published Wednesday, Imperial Capital downgraded its rating on Simon Property Group

to In-Line, and lowered its price target from $164.00 to $160.00. Imperial Capital noted, “We are lowering our rating to In-Line and decreasing our one-year price target to $160 from $164 on SPG's common shares. Achieving our price target, together with receipt of the current dividend, would generate a potential total return of approximately +7% over 12 months. Our revised rating and price target is predicated upon: We think discretionary consumer spending in the U.S. may come under pressure in the near to medium term as a result of sluggish income/job growth and likely higher taxes under most political scenarios. Over time, this might suppress retail space demand associated with discretionary sales. The growth of internet shopping poses a rising threat. News that Amazon (AMZN) is developing its relationships with some high fashion names may represent a serious threat to SPG's outlet business (we estimate the outlet business represents about a third of NOI and has been growing faster than the traditional mall business) and potentially in due course, to the mall.” Simon Property Group closed on Tuesday at $153.98.