Argus Research upgraded the stock of real estate investment trust Vornado Realty Trust to Buy from Hold and maintained a price target of $42 (15.3% upside potential).
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Argus Research analyst Angus Ferguson said that VNO stock has declined about 45.2% year-to-date due to the pandemic and offers “a favorable entry point.” Ferguson added that “we see a number of positive catalysts that could boost VNO shares, including the appointment of new CFO Michael Franco, the January 1 opening of the new Moynihan Train Hall in New York; headcount reductions that will reduce compensation by $35 million annually, and generally positive vaccine news.”
On Dec. 1, Vornado Realty (VNO) announced an annual overhead streamlining program of $35 million, which included the reduction of about 70 jobs. The company said that it “will recognize in the fourth quarter a reduction in Net Income of $23 million attributable to estimated severance and other reduction in force related expenses.”
In addition, the company announced the appointment of Michael Franco as Vornado’s new CFO. Franco, who will continue to remain the company’s president, will replace Joseph Macnow on Dec. 31. Macnow is stepping down and will remain with the company as a senior advisor. (See VNO stock analysis on TipRanks)
Unlike Ferguson, the rest of the Street is sidelined with an analyst consensus of a Hold based on 4 Holds, 2 Buys and 3 Sells. The average analyst price target of $40.38 implies upside potential of about 10.8% to current levels.
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