Vornado downgraded to Underweight on dividend suspension at Piper Sandler

Piper Sandler analyst Alexander Goldfarb last night downgraded Vornado Realty Trust to Underweight from Neutral with a price target of $11, down from $16. The common dividend suspension this early in the year "suggests more going on inside 888 Seventh Avenue than the Street appreciates," the analyst tells investors in a research note. The firm believes a partial reduction would be preferable as it shows better on the underlying cash flows. If cash preservation is so critical, Piper wonders why implementing a $200M stock buyback program is a good use. It believes the stock buyback is unlikely to offset the lack of a dividend.