Street View: Simon Property set for growth despite macro uncertainty

Simon Property

06/08/2024 12:31

** Simon Property Group  SPG.N  lowered annual forecast for
net income and missed second-quarter estimates for funds from
operations (FFO) on Monday
    ** Median PT on the stock is $155 - LSEG data
    
    DEMAND RESILIENCE IN FOCUS
    ** Evercore ISI ("in line," PT: $155) believes co is well
positioned to increase its domestic net operating income in 2025
with income from signed but unoccupied leases, despite a
potential economic slowdown
    ** Truist Securities ("hold," PT: $147) says SPG remains in
a favorable position to weather cyclical downturns compared to
other retail REITs given its strong balance sheet; notes higher
income consumers remain resilient 
    ** JP Morgan ("neutral") says strong demand for SPG's
properties as seen in the second quarter to help drive core
growth; adds consumer spending trends and economic backdrop
"clearly still risks"
    ** Stifel ("buy," PT: $157.5) expects co to experience a
drag on growth from bankruptcies and store closures 
    ** Brokerage adds, "retailer demand and leasing leverage are
stronger at higher-productivity centers"
    


 (Reporting by Kanchana Chakravarty in Bengaluru)
 ((Kanchana.Chakravarty@thomsonreuters.com))