Simon Property Group (SPG) Stock Price Target Raised at Barclays

Barclays upped its price target to $264 from $254 on Simon Property Group (SPG) stock Tuesday.
By Annie Palmer ,

NEW YORK (TheStreet) -- Simon Property Group's  (SPG) - Get Report  price target was raised to $264 from $254 at Barclays Tuesday morning.

The firm maintained its "overweight" rating on the Indianapolis-based commercial real estate company, citing valuation. Simon Property Group is expected to report 2016 second quarter earnings this week.

Barclays analysts believe consumer demand has been strong among most commercial real estate sectors and U.S. assets have become more attractive with recent "geopolitical uncertainty." This volatility in the global market may result in an extension of the real estate cycle, the firm noted.

In retail real estate specifically, Barclays added that they prefer shopping centers due to their "defensive characteristics" and that they foresee strength in small shop occupancy gains. Other areas, such as office and apartment retail appear to be generating weaker results, the firm said. 

"In light of positive fundamentals coupled with full valuation, we think REITs are likely to perform in line with the broader market over the next year," Barclays continued in an analyst note. 

REITs will likely report cash flows that are above estimates in the 2016 second quarter, Barclays said.

Simon Property Group shares are down 0.30% to $222.28 in pre-market trading this morning,

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate SIMON PROPERTY GROUP INC as a Buy with a ratings score of A-. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: SPG

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