Retail Opportunity upgraded to Overweight from Sector Weight at KeyBanc

KeyBanc upgraded Retail Opportunity to Overweight from Sector Weight with a $16 price target. The analyst sees improving outlook for the company’s fundamentals during 2024 with a view into 2025. While there may be modest operating income growth volatility in 2024 related to Rite Aide’s bankruptcy as well as a couple of additional vacates that may materialize, strong leasing demand should allow Retail Opportunity’s return on invested capital to capitalize on below-market rents, which should create a favorable growth environment in 2025, the analyst tells investors in a research note.