Piper Sandler analyst Alexander Goldfarb last night downgraded Vornado Realty Trust to Underweight from Neutral with a price target of $11, down from $16. The common dividend suspension this early in the year "suggests more going on inside 888 Seventh Avenue than the Street appreciates," the analyst tells investors in a research note. The firm believes a partial reduction would be preferable as it shows better on the underlying cash flows. If cash preservation is so critical, Piper wonders why implementing a $200M stock buyback program is a good use. It believes the stock buyback is unlikely to offset the lack of a dividend.
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Published first on TheFly
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Read More on VNO:
- Vornado (NYSE:VNO) Pauses Dividend Payments; Stock Slips 13%
- Vornado downgraded to Underweight from Neutral at Piper Sandler
- Vornado Declares Quarterly Dividends on Preferred Shares
- Vornado Announces Postponement of Common Share Dividends Until Year-End and Authorization of $200 Million Share Repurchase Program
- Vornado to postpone dividends until year-end, approves $200M share buyback plan