Kite Realty Group price target raised to $31 from $28 at Raymond James

Investing.com - Raymond (NSE:RYMD) James raised its price target on Kite Realty Group (NYSE:KRG) to $31.00 from $28.00 on Tuesday, while maintaining a Strong Buy rating on the retail real estate investment trust. The company, with a market capitalization of $5 billion and an attractive 4.8% dividend yield, has maintained dividend payments for 22 consecutive years, according to InvestingPro data.

The firm cited Kite Realty’s attractive relative valuation as a key factor, noting that KRG shares currently trade at one of the lowest AFFO (Adjusted Funds From Operations) multiples in the sector despite having what Raymond James considers the best balance sheet among peers. This assessment is supported by InvestingPro’s financial health score of "GOOD" and a strong current ratio of 1.52, indicating solid liquidity position.

Raymond James views the current multiple discount as unwarranted and expects Kite Realty’s elevated capital expenditure spending to decrease in the second half of 2025 or 2026, which should lead to accelerating AFFO per share growth.

The new $31 price target implies KRG shares trading at 20.3x Raymond James’ 2025 AFFO estimate, representing a one-turn expansion from the current multiple of approximately 19.3x the firm’s 2024 AFFO estimate.

The firm believes this multiple expansion is justified given the increased visibility into accelerating AFFO growth expected in the latter part of 2025 and into 2026. With revenue growth of 3.94% over the last twelve months and 8% dividend growth, the company shows promising fundamentals. For deeper insights into KRG’s valuation and growth prospects, including 7 additional ProTips and comprehensive financial analysis, check out the full research report on InvestingPro.

In other recent news, Kite Realty Group reported a robust first quarter for 2025, exceeding earnings expectations. The company achieved earnings per share of $0.11, surpassing the anticipated $0.0739, while revenue reached $219.17 million, outperforming the projected $211.56 million. Additionally, Kite Realty Group announced the pricing of a $300 million offering of 5.200% Senior Notes due in 2032. Interest payments for these notes will be made semi-annually starting in February 2026.

KeyBanc Capital Markets reiterated its Overweight rating for Kite Realty Group, maintaining a $31.00 price target and emphasizing the company’s recent acquisition of Legacy West. This acquisition is expected to enhance Kite Realty’s exposure to high-quality lifestyle and mixed-use assets. Meanwhile, Citi maintained a Buy rating but lowered its price target to $28.00 due to increased risks in the retail sector. UBS initiated coverage with a Neutral rating and a $24.00 price target, acknowledging near-term tenant challenges but noting potential future opportunities.

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