Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Cantor Fitzgerald initiated coverage on EastGroup Properties (NYSE:EGP), a $9 billion market cap REIT, with an Overweight rating and a price target of $190.00, representing a potential 12.9% upside from current levels. According to InvestingPro data, the company has maintained dividend payments for an impressive 48 consecutive years, demonstrating remarkable stability.
The research firm based its valuation on a 2026 estimated AFFO multiple of 25.2x, which compares to a 22.7x average for property sector peers. Currently trading at a P/E ratio of 36.3x and showing strong revenue growth of 11.9% over the last twelve months, InvestingPro analysis suggests the stock is slightly overvalued relative to its Fair Value.
Cantor Fitzgerald described EastGroup as "one of the best-run organizations in the REIT industry" and expects the company to capture a disproportionate share of the anticipated recovery in the industrial sector.
The firm highlighted EastGroup’s consumption-oriented Sunbelt platform and its unique development strategy as key strengths that position the company favorably as industrial supply declines.
Cantor Fitzgerald also noted that EastGroup’s strong balance sheet could provide an attractive combination of offensive and defensive characteristics if economic growth slows but remains positive.
In other recent news, EastGroup Properties reported its second-quarter earnings for 2025, revealing a slight beat in both earnings per share (EPS) and revenue forecasts. The company posted an EPS of $1.20, surpassing the forecasted $1.19, while actual revenue reached $177.29 million, exceeding the expected $175.19 million. Additionally, EastGroup Properties announced a 10.7% increase in its quarterly dividend, raising it to $1.55 per share from the previous $1.40 per share. This dividend will be payable on October 15, 2025, to shareholders of record as of September 30, 2025. These recent developments reflect EastGroup Properties’ strong financial performance and strategic investments.
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