Federal Realty stock price target raised to $110 from $109 at Stifel

Investing.com - Stifel raised its price target on Federal Realty Investment Trust (NYSE:FRT) to $110.00 from $109.00 while maintaining a Hold rating on the stock. The REIT, currently trading at $94.64 with a market capitalization of $8.2 billion, has maintained dividend payments for an impressive 53 consecutive years, offering a 4.65% yield. According to InvestingPro analysis, the stock appears to be trading near its Fair Value.

The price target adjustment follows Federal Realty’s announcement of several recent transactions and development updates that are part of its ongoing capital allocation strategy.

Federal Realty completed its acquisition of Town Center Plaza and Town Center Crossing in Leawood, Kansas for $289 million in total, according to Stifel analyst Simon Yarmak.

This acquisition aligns with Federal Realty’s previously stated intention to purchase a large asset in Kansas, which was discussed during a meeting at NAREIT.

The real estate investment trust has been looking to expand into new, demographically attractive geographies as part of its growth strategy.

In other recent news, Federal Realty Investment Trust has announced a strategic partnership with Mercedes-Benz (OTC:MBGAF) High-Power Charging to install over 500 ultra-fast electric vehicle charging stalls at 50 of its retail centers across the United States. This initiative is expected to begin at 20 locations, including properties in Arizona, Pennsylvania, and Florida, with the first stations becoming operational in 2026. In analyst updates, Barclays (LON:BARC) initiated coverage on Federal Realty with an Overweight rating, citing the company’s productive retail and mixed-use real estate assets. Conversely, JPMorgan downgraded the stock from Overweight to Neutral, noting a shift in focus away from development, despite acknowledging the strength of Federal Realty’s portfolio. UBS also lowered its price target from $118.00 to $103.00 due to concerns about slower projected FFO growth and market exposure. Additionally, Federal Realty has updated the severance agreement for its CFO, Daniel Guglielmone, to include one year of base salary and annual bonus if terminated without cause. This amendment was part of a regulatory filing that also covered results from the company’s recent annual shareholder meeting, where all proposed measures, including the election of trustees and executive compensation, were approved.

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