Wells Fargo starts Regency Centers at Overweight after pullback

Wells Fargo initiated coverage of Regency Centers with an Overweight rating and $70 price target. With investor sentiment improving for strips, Regency’s stock underperformance of late offers a good entry point, the analyst tells investors in a research note. The firm says the company is a strip leader with limited tenant credit risk, has a history of beats, and an upward earnings bias to estimates. Wells’ strip peer analyses highlight Regency Centers’ above average portfolio quality, limited tenant credit risk, a balance sheet supportive of growth, and an upward earnings bias, contends the firm.