Simon Property price target raised to $225 from $210 at Piper Sandler

Piper Sandler raised the firm’s price target on Simon Property (SPG) to $225 from $210 and keeps an Overweight rating on the shares. Third quarter showed a bifurcation between those whose outlooks remain intact versus those who dialed back, the firm notes. In addition to the strength of retail, the TCO conclusion gives Simon Property full control to maximize these 20 centers and brings its estimates above Consensus for 2026 and 2027. The need for earnings growth in “REITland” was made abundantly clear in Q3 as sectors like apartments took a step back, because of a tepid job market weighing on new rents, while office’s recovery is spreading to the Bay Area, driven by tech and AI, Piper adds. Given the underperformance of REITs, the firm thinks the focus needs to be on delivering cash flow growth.