EastGroup Properties price target raised to $186 from $158 at Morgan Stanley

Morgan Stanley raised the firm’s price target on EastGroup Properties to $186 from $158 and keeps an Equal Weight rating on the shares. The firm raised core FFO estimates by about 1% on average between FY24-FY26, driven by higher NOI estimates as it notes that EastGroup’s shallow bay product type is performing materially better than that of all industrial warehouse product types, implying less risk to long-term internal growth estimates. While “positively inclined,” the firm remains on the sideline due to valuation and waiting for a better entry point, the analyst noted.