Mizuho Securities analyst Haendel St. Juste has maintained their neutral stance on AAT stock, giving a Hold rating yesterday.
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Haendel St. Juste has given his Hold rating due to a combination of factors surrounding American Assets Trust’s recent performance and guidance. Despite the company exceeding fourth-quarter expectations with a strong performance in retail, the forecast for 2025 raised concerns as it fell short of market expectations. This shortfall in guidance was influenced by one-time items and an anticipated dilution due to asset sales, which impacts future financial visibility.
Additionally, while the valuation of American Assets Trust appears attractive compared to its peers, the company’s significant exposure to office spaces, which make up nearly half of its net operating income, raises concerns amid a challenging market for office real estate. The lack of clarity on earnings growth further supports a cautious stance, leading to the Hold rating as the market waits for more information on strategic moves and potential revenue improvements.
In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $24.00 price target.
AAT’s price has also changed slightly for the past six months – from $24.510 to $22.420, which is a -8.53% drop .