KeyBanc maintains Curbline Properties stock at Sector Weight

Published 28/04/2025, 13:16
KeyBanc maintains Curbline Properties stock at Sector Weight

On Monday, KeyBanc Capital Markets maintained a Sector Weight rating on shares of Curbline Properties Corp (NYSE: CURB). The firm’s analyst, Todd Thomas, highlighted the company’s strong performance in the first quarter of 2025, noting a 220 basis point margin expansion and a book-to-bill ratio of 1.5 times. This performance is supported by InvestingPro data showing impressive revenue growth of 31.9% and a robust gross profit margin of 75.8%. This robust financial showing was underscored by solid demand across all of Curbline’s end markets, which include data centers and manufacturing sectors.

Thomas pointed out that despite the challenges posed by the evolving supply chain and rising costs, management is confident these issues will not significantly affect the company’s profit margins. In response to the recent performance, KeyBanc has raised its estimates for Curbline Properties and suggests there could be further upside potential, provided the macroeconomic and operating environment does not deteriorate.

Curbline Properties’ stock is currently trading at 11.9 times KeyBanc’s projected 2026 adjusted EBITDA, which aligns with the company’s four-year average, excluding periods of heightened attention due to artificial intelligence hype. Based on InvestingPro analysis, the stock appears overvalued compared to its Fair Value estimate, with current EV/EBITDA multiple at 26.1x. For deeper insights into CURB’s valuation and access to comprehensive financial health scores, investors can explore the detailed Pro Research Report, available exclusively to InvestingPro subscribers.

The analyst’s comments reflect a belief in the company’s ability to navigate through the current economic landscape, with an emphasis on the strong results demonstrated in the recent quarter. KeyBanc’s position suggests a neutral stance on the stock, with no immediate change to the rating despite the positive developments in Curbline’s operations.

In other recent news, CurbLine Properties Corp reported its first-quarter 2025 earnings, revealing a steady increase in financial performance. The company posted earnings per share of $0.10 and revenue of $38.44 million, aligning with market expectations. CurbLine revised its operational funds from operations guidance upwards to a range of $0.99-$1.20 per share, indicating a positive financial outlook. The company acquired 11 properties for $124 million, enhancing its portfolio and market position. CurbLine’s leased rate improved to 96%, with a significant 27% increase in leasing spreads, highlighting robust operational performance. The company holds $594 million in cash and has full access to a $400 million credit facility, ensuring strong liquidity. Analysts from firms like Citi and Morgan Stanley (NYSE:MS) expressed interest in CurbLine’s acquisition strategy and its impact on future growth. CurbLine has set a $500 million acquisition target for 2025, with a current pipeline exceeding this amount, supported by both debt and cash funding.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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