Federal Realty price target lowered to $101 from $104 at Mizuho

Mizuho lowered the firm’s price target on Federal Realty to $101 from $104 and keeps a Neutral rating on the shares. 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.”