Analyst Dori Kesten of Wells Fargo maintained a Sell rating on Phillips Edison & Company (PECO – Research Report), with a price target of $32.00.
Dori Kesten has given a Sell rating due to a combination of factors that include concerns about Phillips Edison & Company’s ability to meet net acquisition targets and a valuation that appears to be stretched. Although the company reiterated its 2023 guide, there was skepticism about achieving the guided net acquisition pace for 2024 due to the current bid-ask spread, the absence of distress among sellers, and prolonged closing times. Additionally, while the company’s preliminary 2024 guide showed some positive aspects, it was mixed overall, with the midpoint of the NAREIT FFO per share falling slightly below consensus expectations.
Moreover, Kesten noted that the company’s long-term growth prospects and investment management platform were presented well during its Investment Community Day. PECO has demonstrated a viable strategy for internal and external growth, maintaining a commitment to acquiring $200-300 million annually and achieving 3-4% same-store net operating income growth each year. Despite this, the analyst believes that the company’s valuation is not justified by its growth prospects and current financial guides, leading to the recommendation to sell the stock.
PECO’s price has also changed moderately for the past six months – from $33.620 to $37.250, which is a 10.80% increase.
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Phillips Edison & Company (PECO) Company Description:
Phillips Edison & Co Inc is a real estate investment trust. It invests primarily in well-occupied, grocery-anchored neighborhood and community shopping centers. It holds an integrated in-house operating platform built on market leading expertise designed to optimize property value and consistently deliver a great shopping experience.
Read More on PECO:
- Phillips Edison price target lowered to $35 from $36 at Mizuho
- Phillips Edison & Company to Host Investment Community Day
- Phillips Edison management to meet with KeyBanc
- Phillips Edison & Company Declares Monthly Dividend Distributions
- Phillips Edison narrows FY23 core FFO view to $2.31-$2.35 from $2.30-$2.36
