EastGroup Properties initiated with an Outperform at BMO Capital

BMO Capital initiated coverage of EastGroup Properties with an Outperform rating and $190 price target. The company focuses on infill, small-bay industrial assets, which is currently more defensive than big-box warehouse, that has significantly more new supply and tepid demand, the analyst tells investors in a research note. Additionally, 89% of EastGroup’s assets are the Sunbelt, which has attractive population growth and is a likely beneficiary of on- and near-shoring trends, says BMO.