UPDATE: BMO Capital Markets Initiates Simon Property Group with Market Perform Awaiting Better Entry Point

In a report published Thursday, BMO Capital Markets analyst Paul E. Adornato initiated coverage on Simon Property Group (NYSE: SPG) with a Market Perform rating and $175.00 price target.

In the report, Adornato noted, “We are initiating coverage of Simon Property Group, the largest owner of malls and fashion outlet centers in the world, with a Market Perform rating. While we appreciate the company's superior capital allocation, unmatched property portfolio, deep and experienced management team, exceptional financial flexibility and cost of capital, we note that fully 80% of the 25 sellside firms covering the stock have a Buy rating, implying that much of the good news is probably priced into the stock. We prefer to remain on the sidelines awaiting a better entry point or additional catalysts not already well known. In this report, we review Simon Property's lines of business, including its recent acquisition of its 29% stake in France's Klepierre, a major owner of top malls throughout Continental Europe; a lockup on large shareholder BNP Paribas expires this week, which could allow the company to increase its stake.”

Simon Property Group closed on Wednesday at $170.77.