Phillips Edison upgraded to Buy from Neutral at Mizuho

Mizuho upgraded Phillips Edison to Buy from Neutral with a price target of $37, up from $35. 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 upgraded Phillips Edisonto Buy for its “outsized growth” profile stemming from above-average acquisition volume and minimal tenant credit issues.