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Cautious Hold on Tanger: Balancing Strong Q4 Performance with 2025 Growth Slowdown and Tenant Risks

Cautious Hold on Tanger: Balancing Strong Q4 Performance with 2025 Growth Slowdown and Tenant Risks

In a report released today, Juan C. Sanabria from BMO Capital maintained a Hold rating on Tanger (SKTResearch Report), with a price target of $36.00.

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Juan C. Sanabria’s rating is based on several factors that contributed to his Hold rating for Tanger’s stock. Despite the company’s strong performance in the fourth quarter of 2024, where it exceeded earnings expectations and showed robust same-store net operating income (SSNOI) growth, there are elements that temper a more bullish stance. The anticipated deceleration in SSNOI growth for 2025, although still positive, suggests a more cautious outlook.
Additionally, while Tanger has made strategic improvements by reducing its exposure to weaker tenants and securing leases for a significant portion of its 2025 expirations, there remains some uncertainty, particularly regarding potential bad debt issues related to Forever 21. The company’s guidance for 2025, which surpasses market expectations, reflects confidence, yet it is balanced by these risks and uncertainties, leading to the decision to maintain a Hold rating.

In another report released on February 14, Scotiabank also maintained a Hold rating on the stock with a $38.00 price target.

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