Ronald Kamdem, an analyst from Morgan Stanley, maintained the Hold rating on Paramount Group (PGRE – Research Report). The associated price target remains the same with $4.25.
Ronald Kamdem has given his Hold rating due to a combination of factors surrounding Paramount Group’s recent performance and future outlook. The company’s fourth-quarter earnings exceeded expectations, with funds from operations (FFO) surpassing consensus estimates. However, the key performance indicators (KPIs) present a mixed picture, particularly with leasing spreads showing a decline and same-store net operating income (NOI) decelerating.
Despite the positive earnings surprise, the focus remains on the company’s ability to manage lease expirations and refinance upcoming debt maturities. The maturity of a significant loan in January 2025, which was not repaid, adds to the uncertainty. The joint venture is currently negotiating with lenders to sell the property, and early indications on refinancing plans for 2026 maturities are being closely watched. These factors contribute to a cautious outlook, justifying the Hold rating.
According to TipRanks, Kamdem is a 4-star analyst with an average return of 5.0% and a 56.91% success rate. Kamdem covers the Real Estate sector, focusing on stocks such as Healthpeak Properties, Welltower, and Prologis.