Mizuho Securities analyst Haendel St. Juste maintained a Hold rating on Phillips Edison & Company (PECO – Research Report) on December 18 and set a price target of $35.00.
Haendel St. Juste has given his Hold rating due to a combination of factors surrounding Phillips Edison & Company’s current market positioning and future prospects. The company’s Investor Day showcased a robust portfolio, a strong management team, and a variety of growth drivers, which include positive projections for leasing spreads, occupancy rates, tenant credit quality, and transaction volumes. These components contribute to a favorable near-term growth outlook for PECO, with preliminary 2024 core FFO per share guidance slightly above consensus expectations and year-over-year growth forecasted to surpass peer averages.
However, despite the incremental positivity stemming from PECO’s near-term growth potential and strong fundamentals within the shopping center sector, St. Juste maintains a Hold rating, primarily due to the stock’s premium valuation. PECO’s stock is currently trading at a significant premium compared to its peers, which suggests that the market has already priced in the near-term growth opportunities. In addition, while management anticipates continued growth in core FFO into the mid-to-high single digits over the long term, underpinned by solid same-store net operating income (SSNOI) growth and strategic acquisitions, the current valuation appears to fully reflect these prospects, leading to the Hold recommendation.
In another report released on December 18, Compass Point also maintained a Hold rating on the stock with a $39.00 price target.
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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 raised by $3 at BMO Capital, here’s why
- Phillips Edison price target raised to $40 from $37 at BMO Capital
- 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
