EastGroup Properties upgraded to Buy from Hold at Jefferies

Jefferies upgraded EastGroup Properties to Buy from Hold with a price target of $194, up from $174. The firm updated its analysis of real estate investment trusts on the U.S. manufacturing “boom” and its positive impacts on warehouse demand. President-elect Trump won’t hinder the Biden stimulus for manufacturing, and tariffs, or their threat, will drive U.S. companies to invest domestically, the analyst tells investors in a research note. Jefferies upgraded EastGroup (EGP) to a Buy rating saying it is well positioned, and continues to like Stag Industrial (STAG) and LXP Industrial Trust (LXP) to capture this demand and “uniquely benefit” from nearshoring manufacturing to Mexico. EastGroup has exposure to onshoring and nearshoring trends, a consistent track record of outperforming earnings expectations, and a strong development leasing strategy, contends the firm.