Vornado price target raised to $40 from $31 at Truist

Truist raised the firm’s price target on Vornado (VNO) to $40 from $31 and keeps a Hold rating on the shares. The firm is also increasing its FFO estimates as it believes the stock has been repriced to reflect optimism regarding the New York office market, including leasing prospects for PENN 2. That said, Truist thinks Vornado is fairly valued. It experienced the largest normalized FFOps decline in the firm’s coverage universe since 2019, but the stock has been an average performer, resulting in Vornado’s highest FFO multiple in more than eight years. Truist projects very strong near-term growth, but even Vornado’s 2027 FFO and FAD multiples are the highest in its office REIT coverage universe.