Analyst Michael Lewis from Truist Financial maintained a Hold rating on SL Green Realty (SLG – Research Report) and decreased the price target to $54.00 from $62.00.
Michael Lewis has given his Hold rating due to a combination of factors affecting SL Green Realty. One of the primary reasons is the anticipated increase in interest expenses, which has led to a reduction in the 2026 FFO estimate. Although there are potential catalysts for growth, such as opportunities in equity, debt, and leasing deals, these have not yet materialized, prompting a conservative approach to future income projections.
Additionally, the office sector’s fundamentals remain a concern, with a potentially weakening economy impacting stock valuation and high Treasury rates offering limited support. The preference for portfolios with lower capital expenditure burdens and financial leverage further influences this cautious stance. Despite some expected improvements in leasing percentages, the overall outlook suggests challenges ahead, justifying the Hold rating.
In another report released yesterday, Bank of America Securities also reiterated a Hold rating on the stock with a $66.00 price target.
Based on the recent corporate insider activity of 8 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SLG in relation to earlier this year.