Brixmor Property: Promising Growth and Attractive Valuation Drive Buy Rating

Michael Goldsmith, an analyst from UBS, has initiated a new Buy rating on Brixmor Property (BRX).

Michael Goldsmith has given his Buy rating due to a combination of factors that highlight Brixmor Property’s promising growth prospects and attractive valuation. The company is expected to achieve mid-single digit growth in funds from operations (FFO), supported by a strong pipeline of signed but not yet opened leases, which is significantly above the industry average. Additionally, Brixmor is leasing at rates considerably higher than those of upcoming lease expirations, and it has a robust redevelopment pipeline with projects generating returns exceeding 10%.
These elements contribute to a projected same property net operating income (NOI) growth over the next three years that surpasses the peer average. Furthermore, Brixmor’s shares are currently trading at a discount compared to its shopping center peers, despite its faster growth trajectory. This presents a valuation upside as the company’s earnings model remains solid. While there are potential risks from macroeconomic uncertainties and tenant exposures, these are seen as manageable, reinforcing the favorable risk/reward balance at current levels.

In another report released on May 19, Truist Financial also reiterated a Buy rating on the stock with a $30.00 price target.