Alexander & Baldwin price target lowered to $17 from $19 at Piper Sandler

Piper Sandler analyst Alexander Goldfarb lowered the firm’s price target on Alexander & Baldwin to $17 from $19 and keeps a Neutral rating on the shares. The firm is also lowering its 2024 of FFO by 17c to $1.01, and decreasing its 2025 by 18c to $1.04. Piper’s revised outlook incorporates Q4 2023 results and assumes no impact of land sales in 2024 and 2025. Its reduced estimates reflect the still heavy $6M-$7M annual land holding carry costs, a surprise to the firm, which means the remaining $40M book/market value is a wasting asset that it hopes management sells sooner than later, given the erosion of value with each passing year.