BMO Capital analyst Juan C. Sanabria maintained a Hold rating on Kimco Realty today and set a price target of $25.00.
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Juan C. Sanabria has given his Hold rating due to a combination of factors including Kimco Realty’s recent performance and market positioning. While the company reported a strong third-quarter performance with a notable increase in leasing momentum and a record-setting SNO pipeline, its same-store net operating income (SSNOI) growth of 1.9% year-over-year was slower compared to its peers. This indicates that while Kimco is making progress, it is not outpacing its competitors in terms of growth.
Additionally, Kimco has expanded its redevelopment pipeline significantly, which could be a positive long-term strategy, but also introduces potential risks and uncertainties in execution. The company’s guidance has been slightly raised above market expectations, yet the unchanged SSNOI and the credit loss figures, which are at the lower end of the revised guidance, suggest limited immediate upside. These mixed signals contribute to the Hold rating, reflecting a cautious but optimistic outlook.
In another report released on October 21, Wells Fargo also initiated coverage with a Hold rating on the stock with a $23.00 price target.