Kimco Realty price target lowered to $20 from $21 at Compass Point

Compass Point analyst Floris van Dijkum lowered the firm’s price target on Kimco Realty to $20 from $21 and keeps a Neutral rating on the shares. The firm is becoming more cautious on the economic outlook following the recent bank failures, the analyst tells investors. Compass Point believes the banking crisis will cause ripple effects which could curtail investment activities in the shopping center sector. Further, impending debt maturities are expected to result in higher interest expenses as strip owners refinance to higher rates. However, higher occupancy and positive lease spreads should provide positive NOI tailwinds, the firm says. Due to the firm’s caution towards the overall economy, Compass Point is reducing its price targets for companies in the shopping center sector.