UPDATE: Citigroup Upgrades Simon Property Group to Buy, Raises PT
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
Date | Firm | Action | From | To |
---|---|---|---|---|
Dec 2020 | Edward Jones | Downgrades | Hold | Sell |
Dec 2020 | Argus Research | Downgrades | Buy | Hold |
Nov 2020 | Morgan Stanley | Maintains | Equal-Weight |
View More Analyst Ratings for SPG
View the Latest Analyst Ratings
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Posted-In: CitigroupAnalyst Color Upgrades Analyst Ratings