J.P. Morgan analyst Anthony Paolone upgraded the rating on Vornado Realty to a Hold today, setting a price target of $41.00.
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Anthony Paolone has given his Hold rating due to a combination of factors influencing Vornado Realty’s current market position. Despite the recent pullback in VNO’s stock price, which has created a potential opportunity, the fundamentals of the company remain robust. Vornado’s leasing momentum has been positive, particularly with the redevelopment of the PENN campus, which has attracted high-profile tenants and increased rent levels significantly.
However, Paolone maintains a Hold rating as he prefers other investment opportunities within the coverage universe at this time. Additionally, Vornado’s near-term cash flows are under pressure due to capital expenditures, free rent, and leverage. While the company’s future FFO/share is expected to improve as new leases commence, the current valuation appears elevated compared to its peers, which justifies a more cautious stance.
In another report released on November 17, Citi also maintained a Hold rating on the stock with a $38.00 price target.