Market Overview

UPDATE: Citigroup Upgrades Simon Property Group to Buy, Raises PT

Share:
Related SPG
Deutsche Bank Is Talking Troubled Retailers And REIT Risk
Analyst Highlights The 'Scary Mall Owner Monopoly'
Store Capital Runs Fast Track In Real Estate Finance (Investor's Business Daily)

In a report published Monday, Citigroup upgraded its rating on Simon Property Group (NYSE: SPG) from Neutral to Buy, and raised its price target from $156.00 to $173.00.

Citigroup noted, “We are upgrading SPG to Buy and increasing our target price from $156 to $173. SPG's U.S mall and dominant outlet platform should continue to provide solid NOI growth, complemented by a low cost of capital and potential for external growth. Our valuation methodology takes into consideration the company's strong balance sheet and high sales productivity regional mall portfolio. We use a ~27x AFFO multiple and a ~21x FFO multiple on 2013 earnings to arrive at a $173 price target, which implies a ~5% cap rate on 12 month forward NAV. SPG's current valuation appears firm at a 5.2% implied cap rate and ~24x 2013 AFFO, however, outpaced NOI growth complemented by re/development accretion means forward valuation estimates are more attractive vs. both retail REIT peers and large cap REITs.”

Simon Property Group closed on Friday at $153.89.

Latest Ratings for SPG

DateFirmActionFromTo
Mar 2015SunTrust Robinson HumphreyMaintainsBuy
Feb 2015BarclaysMaintainsOverweight
Jan 2015Deutsche BankMaintainsBuy

View More Analyst Ratings for SPG
View the Latest Analyst Ratings

Posted-In: CitigroupAnalyst Color Upgrades Analyst Ratings

 

Related Articles (SPG)

Around the Web, We're Loving...