Brixmor downgraded to Neutral from Buy at Mizuho

Mizuho analyst Haendel St. Juste downgraded Brixmor to Neutral from Buy with a price target of $24, up from $23. The analyst remains constructive on the shopping center real estate investment trusts fiscal 2024. Subsector fundamentals remain robust, as leasing demand remains broad-based and from a variety of operators, while leasing spreads remain elevated and the signed versus occupied pipelines offer incremental earnings visibility into 2025, the analyst tells investors in a research note. However, the firm believes stock selectivity is required as interest expense and inflationary pressures offset progress with fundamentals and tenant credit risk “should not be ignored.” It downgraded Brixmor to Neutral given its lower growth profile relative to peers, longer tenant watch-list and fuller valuation relative to history.