BMO Capital analyst Juan C. Sanabria maintained a Hold rating on Phillips Edison & Company (PECO – Research Report) today and set a price target of $42.00.
Juan C. Sanabria’s rating is based on a combination of factors that reflect both positive and challenging aspects of Phillips Edison & Company’s current financial status. The company’s fourth-quarter performance showed an overall positive trend with a strong same-store net operating income growth of 6.5%. However, this was overshadowed by a sequential decrease in billed occupancy and lower tenant retention rates, which contributed to the decision to maintain a Hold rating.
Despite reiterating the 2025 earnings guidance from the previous update, the guidance remains slightly below market expectations. The anticipated moderation in same-store NOI growth to 3.25% further supports this cautious outlook. While the fundamentals of the company are solid, the analyst is looking for more clarity on tenant health, re-merchandising strategies, and the investment pipeline to reassess the rating in the future.
In another report released on January 29, Wells Fargo also assigned a Hold rating to the stock with a $37.00 price target.