Bullish indicating open at $55-$60, IPO prices at $37
On Tuesday, Mizuho (NYSE:MFG) Securities reiterated its Outperform rating on Vornado Realty Trust (NYSE:VNO) with a steady price target of $48.00. Trading at $42.37, the stock has shown remarkable strength with a 63% return over the past year. The firm’s analyst highlighted Vornado’s stronger-than-expected financial performance, citing a funds from operations (FFO) adjusted figure of 58 cents, which surpassed their estimate by 5 cents. This beat was attributed to higher non-same-store revenue and joint venture income. According to InvestingPro, the company has maintained dividend payments for 35 consecutive years, demonstrating long-term financial stability.
Vornado’s core metrics showed resilience, with office occupancy climbing to 88.8% compared to 87.5% in the previous quarter. With a market capitalization of $8.8 billion and a current ratio of 4.95, the company maintains strong liquidity. Rent spreads also performed robustly, registering at 6% and exceeding Mizuho’s forecasts. The company’s leasing activities were reported to be on track. The analyst anticipates further details from Vornado’s conference call on several topics, including updates on 770 Broadway, Penn 2 leasing and yields, as well as refinancing progress on various assets. Discover more detailed insights and metrics with a InvestingPro subscription, including exclusive ProTips and comprehensive financial analysis.
The analyst from Mizuho expressed optimism about Vornado’s prospects, pointing towards multiple catalysts expected to emerge in the second half of 2025. These include the lease-up of Penn District assets, the potential for offensive strategic moves, and the anticipated increase in net operating income (NOI) from the street retail portfolio. According to Mizuho, the overall assets of Vornado Realty Trust remain underappreciated in the market.
Mizuho’s reiteration of the Outperform rating and its position on Vornado as a top pick comes after a comprehensive analysis of the company’s latest financial results and future potential. The firm maintains a positive outlook on Vornado’s ability to leverage its core and development lease-up strategies through the fiscal years of 2025 and 2026.
In other recent news, Vornado Realty Trust has been in the spotlight with significant developments. Mizuho analyst Vikram Malhotra upgraded Vornado Realty Trust’s stock rating from Neutral to Outperform and increased the price target to $48, citing the company’s robust performance in the fiscal year 2024 and potential for growth in early 2025. Malhotra also emphasized Vornado’s solid liquidity profile, underappreciated Street Retail portfolio, and potential catalysts such as leasing opportunities and possible refinancing actions.
In the meantime, Truist Securities adjusted its outlook on Vornado Realty Trust, raising the price target on the company’s shares to $40.00, while maintaining a Hold rating. This revision was due to a change in sentiment towards the New York office market and optimism around leasing prospects, particularly for PENN 2, a significant development project of Vornado.
Despite the increased price targets, both Mizuho and Truist Securities noted high valuations of Vornado’s stock. However, both firms predict robust growth for Vornado in the near term. These recent developments highlight the evolving dynamics and expectations around Vornado Realty Trust.
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