Balanced Risk-Reward Keeps Tanger at Hold Despite Operating Strength

BMO Capital analyst Juan C. Sanabria maintained a Hold rating on Tanger today and set a price target of $40.00.

Juan C. Sanabria has given his Hold rating due to a combination of factors tied to Tanger’s operating strength and valuation risk. Management has exceeded expectations in leasing by upgrading the tenant mix, including more services, beauty, and food and beverage concepts, while also using temporary tenants strategically to limit vacancies and test brands that can later convert to longer-term, higher-rent deals.

At the same time, he sees the company’s solid balance sheet, strong releasing spreads, and healthy occupancy costs as positives, but believes the uncertain macro and consumer environment limits the likelihood of further relative multiple expansion. Even with potential upside to same-store NOI and FFO guidance and constrained new supply, the current risk‑reward appears balanced, leading him to maintain a neutral, or Hold, stance on the shares.

In another report released on March 6, Barclays also maintained a Hold rating on the stock with a $38.00 price target.