Jeffrey Spector, an analyst from Bank of America Securities, reiterated the Buy rating on Eastgroup Properties (EGP – Research Report). The associated price target was lowered to $198.00.
Jeffrey Spector has given his Buy rating due to a combination of factors that highlight Eastgroup Properties’ strong performance and strategic positioning. The company reported a slight beat in its first-quarter financial results, with funds from operations per share exceeding expectations by 1%. This was largely driven by elevated leasing volumes, which resulted in increased occupancy rates. Eastgroup Properties’ robust operating platform and strategic focus on the Sunbelt and shallow bay markets further support the positive outlook.
Despite the current macroeconomic uncertainties, Eastgroup Properties remains proactive in improving leasing processes and maintaining high standards for tenant credit quality. The company has adjusted its guidance to reflect a stronger core performance, although it anticipates slower external growth due to delayed capital deployment. Spector’s updated price objective of $198 suggests a potential 25% total return, underpinning the Buy rating despite a more cautious view on the broader industrial sector.
According to TipRanks, Spector is a 4-star analyst with an average return of 3.8% and a 53.13% success rate. Spector covers the Real Estate sector, focusing on stocks such as Simon Property, Rexford Industrial Realty, and Eastgroup Properties.
In another report released on April 23, Truist Financial also maintained a Buy rating on the stock with a $180.00 price target.