Skip to main content

Market Overview

Goldman Sachs: For Paramount Group, Improving Micro Conditions Balance Macro Challenges

Goldman Sachs: For Paramount Group, Improving Micro Conditions Balance Macro Challenges

Paramount Group Inc (NYSE: PGRE) shares have sold off steeply since late last year, and consequently are trading at a wider discount to peers versus their historical average, according to Goldman Sachs. 

The Analyst

Analyst Andrew Rosivach upgraded shares of Paramount Group from Sell to Neutral and increased the 12-month price target from $15 to $16.

The Thesis

Macro drivers for Paramount Group remain challenging given the combination of decelerating job growth and increasing supply growth, Rosivach said in a Tuesday note. (See the analyst's track record here.) 

The company is likely to benefit in 2018 from improving micro conditions such as reduced near-term leasing risk and improving same-store occupancy, Rosivach said. 

Goldman expects the company to have the highest same-store net operating income growth among its office coverage in 2018 and 2019.

"Since being added to the Americas Sell List on June 22, 2017, the stock is down 12.8 percent versus [an 8-percent decline] for RMZ and an 8.8-percent [rise] for the S&P 500," the analyst said. 

Citing the reduced near-term leasing risk and improvement in tenant demand fundamentals following tax reform, Rosivach said Paramount merits an in-line multiple to its coverage.

The Price Action

Paramount Group shares are down over 13 percent over the past year.

Related Links:

Wells Fargo: 27 Stocks To Play Real Estate In 2018

Analyst: REITs Falling On Rising Treasury Bond Rates

Latest Ratings for PGRE

Jan 2021MizuhoDowngradesNeutralUnderperform
Dec 2020Morgan StanleyMaintainsOverweight
Dec 2020Wells FargoDowngradesOverweightUnderweight

View More Analyst Ratings for PGRE
View the Latest Analyst Ratings


Related Articles (PGRE)

View Comments and Join the Discussion!

Posted-In: Andrew Rosivach Goldman SachsAnalyst Color REIT Upgrades Price Target Analyst Ratings Real Estate Best of Benzinga

Latest Ratings

ARECHC Wainwright & Co.Maintains4.5
MGICHC Wainwright & Co.Maintains20.0
ABCMSVB LeerinkMaintains25.0
CCHWFCantor FitzgeraldMaintains8.2
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.
Everything you need to know about the latest SPAC news.
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