Federal Realty (FRT – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Juan C. Sanabria from BMO Capital maintained a Buy rating on the stock and has a $120.00 price target.
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Juan C. Sanabria has given his Buy rating due to a combination of factors that showcase Federal Realty’s promising future. The company’s fourth-quarter earnings met expectations with a solid same-store net operating income growth of 3.8% and strong leasing activity. Although the guidance for 2025 slightly missed expectations when excluding a one-time tax benefit, the core growth projections remain robust, with an anticipated same-store net operating income growth of 3.5% and an expected occupancy rate of 95% by the end of 2025.
Additionally, Sanabria notes that Federal Realty is expanding its acquisition opportunities into new markets like Cleveland, which could present further growth potential. While the introduction of the 2025 funds from operations guidance is slightly above expectations, it implies a healthy year-over-year growth of 5.8%. These factors, combined with a focus on redevelopment investments, position Federal Realty optimistically for future performance, justifying the Buy rating.
In another report released on January 29, Wells Fargo also assigned a Buy rating to the stock with a $125.00 price target.