Jefferies upgrades SL Green Realty stock to Buy on Midtown recovery

Investing.com - Jefferies upgraded SL Green Realty (NYSE:SLG) from Hold to Buy on Monday, raising its price target to $63.00 from $57.00. The stock, currently trading at $55.17, has shown significant volatility with a beta of 1.75. According to InvestingPro analysis, SLG appears overvalued at current levels.

The upgrade reflects SL Green’s strategic reinvestment in its Midtown Manhattan core properties, which positions the real estate investment trust to capitalize on post-COVID office market recovery trends.

Jefferies cited AI-driven job growth and return-to-office trends as key factors boosting demand for the company’s Class A office assets in supply-constrained markets.

The firm expects SL Green’s occupancy rates to increase by approximately 70 basis points through 2026, representing continued improvement in the company’s property utilization.

This occupancy growth forecast is supported by SL Green’s current leasing pipeline, which exceeds 1.1 million square feet, according to Jefferies’ analysis.

In other recent news, SL Green Realty has been the focus of several analyst evaluations. Piper Sandler has reiterated its Overweight rating on SL Green Realty, highlighting the resilience of New York City’s office market and maintaining a price target of $72.00. The firm noted that the stock’s recent decline was not in line with broader market trends and emphasized the strength of SL Green’s position in a robust real estate submarket. Meanwhile, Jefferies has adjusted its price target for SL Green Realty to $57.00, up from $56.00, while maintaining a Hold rating, reflecting revised financial projections related to potential debt extinguishment gains. Evercore ISI also reiterated an Outperform rating with a price target of $74.00, although the stock traded down 4.1% following SL Green’s latest earnings report, which did not meet investor expectations. These developments reflect the mixed sentiments among analysts about SL Green’s current and future market position.

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