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Hold Rating for Veris Residential Amid Uncertain Macroeconomic Environment and Discounted Trading Position

Hold Rating for Veris Residential Amid Uncertain Macroeconomic Environment and Discounted Trading Position

Michael Lewis, an analyst from Truist Financial, maintained the Hold rating on Veris Residential. The associated price target was lowered to $15.00.

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Michael Lewis has given his Hold rating due to a combination of factors impacting Veris Residential’s financial outlook. Although there is an increase in the funds from operations (FFO) estimates for 2025 and 2026, driven by land sale gains and a slight beat in normalized FFO, the overall macroeconomic environment remains uncertain. This uncertainty, coupled with sluggish job growth, has led to a reduction in the price target from $16 to $15.
Another reason for the Hold rating is the company’s current trading position, which is at a 31% discount to the net asset value (NAV) estimate, compared to a historical average discount of 26%. Additionally, the timing and pricing of asset dispositions and the re-stabilization of Liberty Towers are crucial factors that could influence future performance. Despite the positive adjustments in FFO estimates, these uncertainties and market conditions justify a cautious approach, resulting in a Hold recommendation.

In another report released on July 30, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $15.00 price target.

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