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Promising Growth and Strategic Initiatives Drive Buy Rating for Vornado Realty

Promising Growth and Strategic Initiatives Drive Buy Rating for Vornado Realty

Vornado Realty (VNOResearch Report), the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst John Kim from BMO Capital maintained a Buy rating on the stock and has a $52.00 price target.

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John Kim has given his Buy rating due to a combination of factors demonstrating promising growth and performance for Vornado Realty. The company experienced a significant beat in its Core Funds From Operations per share during the fourth quarter of 2024, although this was partly influenced by one-time items. Nevertheless, Vornado’s office leasing activities have shown strong acceleration, highlighted by positive cash spreads, and there is a notable improvement in occupancy rates within its New York City offices and THE MART.
Additionally, the development yield for the PENN 2 project has increased to 10.5%, indicating a positive outlook for future returns. The company’s leadership, under Chairman and CEO Steve Roth, is ambitiously aiming for a high occupancy target of 96-97% in the near term, reflecting confidence in the company’s strategic direction. Despite some negative aspects, such as a decline in same-store net operating income and occupancy challenges at 555 California, the overall performance and strategic initiatives position Vornado Realty favorably in the market.

Kim covers the Real Estate sector, focusing on stocks such as AvalonBay, Boston Properties, and Cousins Properties. According to TipRanks, Kim has an average return of 0.8% and a 48.79% success rate on recommended stocks.

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