RioCan Real Estate Investment (RIOCF – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst yesterday. Analyst Michael Markidis from BMO Capital maintained a Buy rating on the stock and has a C$21.50 price target.
Michael Markidis has given his Buy rating due to a combination of factors that indicate a strong performance outlook for RioCan Real Estate Investment. The company’s robust finish to 2024, highlighted by successful interim occupancies and promising initial guidance for 2025, has reinforced confidence in its urban retail portfolio. Additionally, the anticipated investor day is expected to provide further insights into RioCan’s strategic plans, particularly concerning its multifamily portfolio, which could act as a catalyst for future growth.
Furthermore, RioCan’s financial projections for 2025, including a healthy commercial SP-NOI growth and significant development gains, underpin the positive outlook. The company’s strategic portfolio adjustments, such as the sale of certain rental properties and continued investment in RioCan Living, demonstrate a focus on optimizing asset value. Moreover, the proactive management of debt maturities, with more than half addressed, and the potential for refinancing at favorable rates, contribute to a stable financial position. These elements collectively support the Buy rating, reflecting confidence in RioCan’s ability to deliver value to investors.
In another report released on February 23, RBC Capital also maintained a Buy rating on the stock with a C$22.00 price target.