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Investing.com - Barclays (LON:BARC) initiated coverage on Kimco Realty (NYSE:KIM), a $14.35 billion market cap real estate company currently trading at $21.18, with an Overweight rating and a $25.00 price target on Wednesday.
The investment bank views Kimco as a large-cap, high-quality, diversified proxy for grocery-anchored shopping centers, noting the stock currently trades at a modest discount to its retail peers on a price-to-forward FFO basis. According to InvestingPro data, the company maintains strong financials with a PEG ratio of 0.59, suggesting attractive valuation relative to its growth rate.
Barclays highlighted Kimco’s above-average FFO per share growth projection of 5% for 2025, along with strong blended leasing spreads that show additional upside potential. The company has demonstrated its financial stability through 34 consecutive years of dividend payments, currently offering a 4.72% yield.
The firm also pointed to Kimco’s stabilizing free cash flow profile following the integration of two large M&A transactions completed over the past five years.
Barclays expects Kimco stock to re-rate positively versus peers over the next 12 months, potentially returning to its historical average of trading at a modest premium to the sector.
In other recent news, Kimco Realty Corporation announced the pricing of a $500 million public offering of 5.300% notes due in 2036, with an effective yield of 5.354%. The proceeds from this offering are intended for general corporate purposes, including repaying outstanding borrowings and funding acquisitions. In related developments, Stifel analysts adjusted their price target for Kimco Realty to $25.75 from $27.50 while maintaining a Buy rating, reflecting confidence in the company’s leasing demand and consumer traffic. Estee Lauder Companies (NYSE:EL) reported a challenging third quarter for 2025, with a 33% decline in earnings per share year-over-year and a 9% drop in organic sales. Despite these figures, Estee Lauder remains optimistic about returning to sales growth by fiscal 2026, focusing on key markets such as the U.S., China, and Japan. The company has been facing significant challenges in the Travel Retail segment, which saw a 28% organic decline. Estee Lauder is also implementing strategic initiatives to improve gross margins and operating efficiencies in response to ongoing macroeconomic pressures.
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