Federal Realty upgraded to Overweight on valuation at Piper Sandler

Piper Sandler analyst Alexander Goldfarb last night upgraded Federal Realty Investment Trust (FRT) to Overweight from Neutral with an unchanged price target of $111. The shares are trading at a “relatively attractive valuation,” the analyst tells investors in a research note. The firm says Federal Realty and Essex Property Trust (ESS) are “trading cheap” compared to real estate investment trust peers despite track records of funds from operations and dividend growth. With hope of a recession fading, the prospect for real estate demand improves, which should “help thaw” the commercial real estate debt and transaction markets,” Piper writes.