Street Calls of the Week
Investing.com - JMP Securities has reiterated its Market Outperform rating and $16.00 price target on Whitestone REIT (NYSE:WSR) following investor meetings with the company’s senior leadership team. According to InvestingPro data, the company has maintained dividend payments for 16 consecutive years and shows strong financial health with a current ratio of 2.24x, indicating solid liquidity position.
The firm’s analyst highlighted that the investment community underappreciates the strength of Whitestone’s portfolio, which has consistently been among the leaders in shopping center same-property growth. Management believes the company can consistently produce 4%-6% earnings growth due to underlying market strength and benefits from deployment and platform scale. With a revenue growth of 5.27% in the last twelve months and a healthy gross profit margin of 69.84%, the company’s operational performance supports management’s outlook.Discover more insights about WSR and 1,400+ other stocks with comprehensive Pro Research Reports available on InvestingPro.
JMP Securities noted that Whitestone’s path to de-leverage its balance sheet is becoming more transparent, potentially eliminating what the firm views as an investment overhang. The meetings made the firm incrementally more positive on the investment opportunity.
The firm pointed to Whitestone’s discounted valuation as further supporting the investment case, with shares currently trading at mid-12x 2025 estimated FFO/share compared to the shopping center REIT average of 14x.
JMP Securities maintained its 2025 and 2026 estimates at $1.04 and $1.10 per share, respectively, compared to consensus estimates of $1.05 and $1.12. Whitestone’s own 2025 guidance ranges from $1.03 to $1.07.
In other recent news, Whitestone REIT reported its Q2 2025 earnings, exceeding expectations with an earnings per share (EPS) of $0.10, compared to the forecasted $0.08. Despite this positive earnings surprise, the company reported revenue of $37.9 million, which fell slightly short of the anticipated $38.33 million. Additionally, Whitestone REIT announced a $100 million at-the-market equity offering program, partnering with several financial institutions to facilitate this initiative. This development was disclosed in a press release filed with the Securities and Exchange Commission.
Meanwhile, Citizens JMP analyst Mitch Germain reiterated a Market Outperform rating for Whitestone REIT, maintaining a price target of $16.00. The analyst emphasized the company’s impressive portfolio operating trends and unique leasing strategy. In another development, hedge fund Emmett Investment Management is preparing for a potential boardroom battle at Whitestone REIT, expressing concerns about the company’s capital allocation and governance practices. These recent developments reflect various strategic and financial activities surrounding Whitestone REIT.
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