Analyst Ronald Kamdem from Morgan Stanley maintained a Hold rating on Eastgroup Properties and keeping the price target at $178.00.
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Ronald Kamdem has given his Hold rating due to a combination of factors influencing EastGroup Properties’ financial performance and future outlook. The company’s core funds from operations (FFO) slightly exceeded expectations, but the guidance for future FFO remained unchanged and below consensus, suggesting limited upside potential. Additionally, while the same-store net operating income (NOI) guidance was raised, the overall occupancy and development starts guidance were revised downward, indicating potential challenges ahead.
Despite these concerns, there were positive developments such as an improvement in tenant retention rates and a significant increase in dividends. However, the deceleration in cash releasing spreads and the reduction in occupancy guidance may weigh on investor sentiment. These mixed signals contribute to the Hold rating, as the stock presents both opportunities and risks that balance each other out in the current market environment.
Kamdem covers the Real Estate sector, focusing on stocks such as Regency Centers, BXP, and Paramount Group. According to TipRanks, Kamdem has an average return of 7.3% and a 58.15% success rate on recommended stocks.