Market Overview

Tanger Factory Outlet Removed From Goldman's Americas Buy List, Downgraded To Neutral Citing Slowing Growth & Increased Expansion Risks


Tanger Factory Outlet Centers Inc’s (NYSE: SKT) tenant risk has expanded beyond department stores, Goldman Sachs’ Andrew Rosivach said in a report. He downgraded the rating on the company from Buy to Neutral, while reducing the 12-month price target from $44 to $40.

Analyst Rosivach cited three reasons for the downgrade:

  1. A slowdown in expected internal and external growth
  2. Greater headline risk beyond department stores
  3. Less attractive valuation

Tanger Factory Outlet’s shares have gained 15.4 percent since December 8, 2015, versus a 5.8 percent gain in the S&P 500 and a 10.5 percent gain in the RMZ. “Additionally, SKT’s 2017E FFO multiple has expanded by 13.3% over the same time period, versus REITs +6.9% and mall REITs +5.2%, Rosivach mentioned and removed Tanger Factory Outlet from Americas Buy List.

Slowing Growth

While the company is expected to generate 6.3 percent FFO growth in 2016, this is expected to slow to 4.6 percent in 2017. “We expect external growth to slow due to a smaller volume of development projects, while internal growth could moderate due to tough expense comps and possibly smaller leasing spreads,” the analyst wrote.

Greater Headline Risk

Earlier Tanger Factory Outlet could avoid headline risk from a lack of department store exposure. The portfolio had now been impacted by inline retailer closures from companies like Aeropostale Inc (OTCMKTS: AROPQ) and Wolverine World Wide, Inc. (NYSE: WWW), Rosivach noted.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for SKT

Sep 2020KeyBancUpgradesUnderweightSector Weight
Jul 2020Goldman SachsReinstatesNeutral
Jun 2020JP MorganMaintainsUnderweight

View More Analyst Ratings for SKT
View the Latest Analyst Ratings


Related Articles (SKT)

View Comments and Join the Discussion!

Posted-In: Andrew Rosivach Goldman SachsAnalyst Color Downgrades Price Target Analyst Ratings

Latest Ratings

UAADeutsche BankUpgrades22.0
TRPCredit SuisseUpgrades70.0
SPRCredit SuisseUpgrades50.0
NFLXDZ BankUpgrades650.0
SHYFRaymond JamesMaintains34.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at