Simon Property Group Now a “Conviction Buy” at Goldman Sachs (SPG)

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Mall-based real estate investment trust (REIT) Simon Property Group, Inc. ( SPG ) on Monday caught some very bullish commentary from analysts at Goldman Sachs.

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 development pipeline."

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' REIT."

Simon Property Group shares rose 94 cents, or +0.6%, in premarket trading Monday.

The Bottom Line
Shares of Simon Property Group ( SPG ) 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. ( SPG ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Stocks

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