Vornado price target lowered to $36 from $40 at Truist

Truist analyst Michael Lewis lowered the firm’s price target on Vornado (VNO) to $36 from $40 and keeps a Hold rating on the shares. The firm is only slightly lowering its 2026 FFO estimate to $2.39ps from $2.44ps, even though management suggested core FFO is likely to be flattish versus 2025. Next year’s earnings will be impacted by expected asset sales and taking some Seventh Avenue retail offline for redevelopment. Truist’s pricing/timing assumptions regarding those items could prove to be optimistic, and the firm is also assuming significant debt repayment, which could become refinancings instead as Vornado tends to keep a relatively high cash balance.