Retail Opportunity cut to Neutral at BTIG on negative FFO growth view

BTIG analyst Michael Gorman downgraded Retail Opportunity to Neutral from Buy with no price target. The analyst is citing his expectations for negative FFO per share growth, higher cap rates on the existing portfolio, and declining retail and consumer sentiment. Gorman adds that from a fundamentals perspective he remains positive on Retail Opportunity’s assets and expectations for healthy same-store net operating income growth of 2.8% next year, but he also warns that an upside catalyst could be challenging against the multiple headwinds of 2023.