Mall-based real estate investment trust (REIT) Simon Property
Group, Inc. (
) on Monday caught some very bullish commentary from analysts at
The firm restarted coverage on SPG with a "Conviction Buy List"
rating and $187 price target, suggesting an 18% upside to the
stock's Friday closing price of $158.56.
A Goldman analyst commented, "We think Simon is a GARP story,
with a clear growth profile and a modest valuation premium…Simon
will likely provide 2013 guidance on its third quarter conference
call in September. We think the market will be positively surprised
by the company's growth potential due to the annualized benefit of
2012 acquisitions and the front-ended strength of the company
Continuing, "Our 12 month price target of $187.00 assumes SPG
will trade at 17.2x 2017E AFFO, which is a 20% premium to the
sector, and a valuation we think is merited for a 'best in class'
Simon Property Group shares rose 94 cents, or +0.6%, in
premarket trading Monday.
The Bottom Line
Shares of Simon Property Group (
) have a 2.52% dividend yield, based on Friday's closing stock
price of $158.56. The stock has technical support in the $147-$150
price area. The shares are trading near all-time highs.
Simon Property Group, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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