EastGroup Properties stock price target raised to $180 from $175 at Mizuho

Investing.com - Mizuho (NYSE:MFG) has raised its price target on EastGroup Properties (NYSE:EGP) to $180.00 from $175.00 while maintaining an Outperform rating on the stock. The REIT, currently trading at $169.88, has shown strong financial performance with a "GREAT" overall health score according to InvestingPro data.

The price target increase comes as Mizuho analyst Vikram Malhotra revised the firm’s FY25 estimate upward by 0.5%, while lowering the FY26 estimate by 0.5%.

Mizuho cited several factors for the adjustment, including higher occupancy estimates now at 96.7% versus the company’s guidance of 95.6%-96.6%, and higher cash rent spreads estimated at 29% in FY25 compared to 36% in FY24.

The firm also noted higher NOI growth driven by increased rental revenue, estimating 6.1% growth in FY25 versus the company’s guidance of 5.8%-6.8%, partially offset by higher operating expenses and lower interest expense.

Mizuho’s FY25 FFO estimate of $8.88 falls within EastGroup Properties’ guidance range of $8.81 to $9.01.

In other recent news, EastGroup Properties reported its first-quarter 2025 earnings, surpassing analyst expectations with an earnings per share of $1.14, compared to the projected $1.10. The company also exceeded revenue forecasts, reporting $174.45 million against the anticipated $170.38 million. Additionally, during its annual shareholder meeting, EastGroup announced the election of seven directors to its board and ratified KPMG LLP as its independent auditors for the fiscal year ending December 31, 2025. Shareholders also approved executive compensation, reflecting confidence in the company’s management and strategic direction. EastGroup’s strategic focus on multi-tenant and last-mile delivery properties contributed to a 7.1% year-over-year increase in funds from operations per share, reaching $2.12. The company maintained strong leasing and occupancy rates, with occupancy at 96.5%. Looking ahead, EastGroup provided guidance for full-year funds from operations to be between $8.81 and $9.01 per share. These developments highlight EastGroup’s ongoing robust performance and strategic positioning in the industrial real estate market.

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