Morgan Stanley analyst Ronald Kamdem has maintained their neutral stance on EGP stock, giving a Hold rating on February 19.
Ronald Kamdem has given his Hold rating due to a combination of factors surrounding EastGroup Properties’ recent performance and market conditions. The company’s portfolio is currently 97.1% leased and 95.8% occupied, which shows stability but also a slight decline compared to previous quarters. While the leasing activity has been robust with new and renewal leases showing significant rental rate increases, the pace has slightly decreased from the previous quarter.
Another factor influencing the Hold rating is the impact of Conn’s Inc.’s lease rejection due to bankruptcy proceedings, which EastGroup managed to re-lease at a higher rate. This demonstrates resilience but also highlights potential risks in tenant stability. Overall, while EastGroup Properties shows strong operational metrics, the combination of stable occupancy rates and external market challenges suggests a cautious approach, justifying the Hold rating.
EGP’s price has also changed slightly for the past six months – from $186.020 to $184.980, which is a -0.56% drop .
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