Hold Rating Maintained as Premium Valuation Caps Upside Despite Improved Fundamentals

Michael Lewis, an analyst from Truist Financial, maintained the Hold rating on Simon Property. The associated price target was raised to $196.00.

Michael Lewis has given his Hold rating due to a combination of factors, including modest upside to his new price target and an already full valuation. He raised his funds-from-operations outlook for 2026 and 2027 on stronger-than-expected property income and healthy underlying metrics such as traffic, tenant sales, and leasing demand, even while acknowledging somewhat higher interest costs.

At the same time, his valuation work shows the shares trading at a sizable premium to Simon Property’s net asset value and above the company’s historical FFO multiples, which limits prospective total return. His updated $196 target price, derived from a mix of discounted cash flow, NAV premium, and FFO-based metrics, implies only a low single‑digit total return including the dividend, leading him to maintain a neutral, or Hold, stance despite the improved fundamental outlook.