Juan C. Sanabria, an analyst from BMO Capital, maintained the Hold rating on Phillips Edison & Company (PECO – Research Report). The associated price target was lowered to $40.00.
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Juan C. Sanabria’s rating is based on a combination of factors, including Phillips Edison & Company’s recent financial performance and market conditions. The company’s first-quarter earnings exceeded expectations, primarily due to a one-time lease termination fee, and showed a solid same-store net operating income growth. However, despite this positive performance, the economic occupancy rate experienced a slight decline year-over-year, and the acquisition cap rates fell short of BMO’s expectations.
Additionally, while the company maintained its guidance for 2025, it remains slightly below market consensus and BMO’s estimates, indicating moderate growth potential. Sanabria also noted the need for further insights into tenant health, bad debt trends, and re-merchandising strategies, which could impact future performance. These factors collectively contribute to the Hold rating, suggesting that while the company is performing well, there are uncertainties that warrant a cautious approach.
In another report released on April 22, Morgan Stanley also maintained a Hold rating on the stock with a $36.00 price target.