Maintaining a Neutral Stance: Modest FFO Upgrades but Limited Upside Justify Hold Rating on U.S. Retail REIT

Morgan Stanley analyst Ronald Kamdem maintained a Hold rating on Phillips Edison & Company today and set a price target of $37.00.

Ronald Kamdem has given his Hold rating due to a combination of factors that balance modest fundamental improvements with a fairly full valuation. While his updated projections show incremental increases in funds from operations for 2025 and 2026, these upgrades are not large enough, in his view, to justify a more aggressive stance on the shares at the current price level. The stock’s recent trading level around the mid‑$30s suggests that much of the near‑term earnings momentum may already be reflected in the valuation.

At the same time, the report indicates that there has been a reassessment of the company’s risk‑reward profile, but not one strong enough to materially change the overall investment thesis. The business remains fundamentally sound as a U.S. retail-focused REIT, yet Kamdem appears to see limited upside relative to the risks and to alternative opportunities in the sector. As a result, he concludes that maintaining a neutral, Hold recommendation is appropriate while investors monitor execution and future growth catalysts.

Kamdem covers the Real Estate sector, focusing on stocks such as Regency Centers, Broadstone Net Lease, and FrontView REIT, Inc.. According to TipRanks, Kamdem has an average return of 8.9% and a 58.90% success rate on recommended stocks.