In a report released today, John Kim from BMO Capital maintained a Buy rating on Vornado Realty, with a price target of $42.00.
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John Kim has given his Buy rating due to a combination of factors including the strong tenant demand and the impressive growth prospects of Vornado Realty’s projects. Despite the stock’s decline of 15.7% year-to-date, largely influenced by the recent mayoral race and modest FFOps growth forecast for 2026, the company is experiencing robust tenant interest and rising asking rents.
One of the key drivers of this positive outlook is the PENN District, Vornado’s highest-growth project, which is benefiting from $2.5 billion in capital improvements and its strategic location as a transit hub. The asking rents at PENN 2 have more than doubled since pre-development, and the company anticipates a high leasing rate by the end of the year. Additionally, significant leasing activity, such as Apple Music and TV’s expansion, underscores the strong demand for Vornado’s properties.