Mizuho Securities analyst Haendel St. Juste has reiterated their neutral stance on SPG stock, giving a Hold rating yesterday.
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Haendel St. Juste’s rating is based on Simon Property Group’s recent financial performance and strategic outlook. The company announced its fourth-quarter results for 2024, which slightly underperformed expectations but provided a 2025 funds from operations (FFO) outlook that exceeded consensus estimates by about 1%. Despite these positive aspects, St. Juste maintains a Neutral stance as the current stock price seems to already reflect the company’s near-term and long-term growth prospects. The valuation is trading at a premium compared to its historical average.
Furthermore, Simon Property Group has shown strong leasing activity and is expanding its redevelopment pipeline, which could potentially offer additional upside. The company is also shifting its focus to redevelop ‘B’ malls, anticipating higher yields than those from ‘A’ malls due to more favorable cap rates. However, despite these growth opportunities, St. Juste believes that any potential upside is already accounted for in the stock’s current valuation, justifying a Hold recommendation.
In another report released yesterday, Truist Financial also maintained a Hold rating on the stock with a $168.00 price target.