Ki Bin Kim, an analyst from Truist Financial, reiterated the Hold rating on Kimco Realty (KIM – Research Report). The associated price target remains the same with $25.00.
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Ki Bin Kim’s rating is based on several key factors impacting Kimco Realty. Firstly, the company’s 2025 guidance for FFO per share is aligned with both the consensus and Truist’s estimates, indicating stable expectations. However, while the lower General and Administrative expenses due to Milton Cooper’s retirement are positive, contributing to a slight financial benefit, there are concerns about the bad debt reserve. The bad debt reserve is projected at 75-100 basis points, which may not provide enough cushion for unexpected financial setbacks, especially considering the potential bankruptcies of key tenants like Joann and Party City.
Moreover, the lack of a significant buffer in the bad debt reserve raises uncertainties about the company’s ability to exceed earnings expectations. Despite these concerns, the earnings guidance is mostly in line with expectations, but the uncertainties surrounding bad debt could be contributing to slight stock weakness. As a result, Ki Bin Kim believes a Hold rating is appropriate given the balanced outlook of stable guidance with underlying risks in the debt reserve.
Bin Kim covers the Real Estate sector, focusing on stocks such as Prologis, Americold Realty, and Eastgroup Properties. According to TipRanks, Bin Kim has an average return of 9.3% and a 63.17% success rate on recommended stocks.
In another report released today, Deutsche Bank also maintained a Hold rating on the stock with a $24.00 price target.