In a report published Friday, Bank of America analyst Craig Schmidt downgraded Tanger Factory Outlet Centers SKT from Buy to Neutral, and lowered the price target from $41.00 to $36.00.
In the report, Bank of America noted, “We are downgrading Tanger Factory Outlet Centers (SKT) from Buy to Neutral and lowering our price objective to $36 from $41. The lower PO is primarily due to an increase in SKT's cap rate from 6.0% to 6.4%, which we believe better reflects the pricing of outlet centers below $400/psf. SKT's sales psf ratio is up +2.3% for the past 12 months, which is below the regional mall average of +4.6%. While we don't foresee any major near term negative catalysts, the stock is a Neutral within our coverage universe based on a total potential return of 15.2% (as of 8/8/13).”
Tanger Factory Outlet Centers closed on Thursday at $32.29.
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