Piper Sandler reiterates Overweight rating on SL Green stock amid NYC market strength

Published 02/09/2025, 14:38
Piper Sandler reiterates Overweight rating on SL Green stock amid NYC market strength

Investing.com - Piper Sandler has reiterated an Overweight rating and $72.00 price target on SL Green Realty (NYSE:SLG), currently trading at $55.87 with a market capitalization of $4.23 billion. The stock, which has declined 13.27% year-to-date, has been among the hardest hit NYC-exposed REITs since June’s mayoral primary upset.

The firm notes that SL Green has fallen approximately 12% since the primary, yet the company focuses on what Piper Sandler describes as "one of the strongest real estate submarkets in the country." According to InvestingPro data, the company has maintained dividend payments for 29 consecutive years, currently offering a 5.43% yield.

New York City office attendance has finally surpassed pre-pandemic levels, according to the research note, with no significant supply entering the market to disrupt pricing power for premium buildings.

Piper Sandler highlighted Vornado Realty Trust’s recent implied $1,300 per square foot acquisition as evidence of a market rebound in the premium office sector.

The firm expressed confidence that business commitment to Midtown Manhattan will endure, provided Albany doesn’t "cave," which Piper Sandler suggests would risk triggering another round of business migration to Florida and other locations.

In other recent news, SL Green Realty Corp reported its second-quarter 2025 earnings, showing a narrower-than-expected loss with an earnings per share (EPS) of -$0.16 compared to the anticipated -$0.21. However, the company’s revenue did not meet expectations, totaling $147.54 million against a forecast of $157.96 million. Despite the revenue shortfall, Jefferies adjusted its price target for SL Green Realty, raising it to $57 from $56 while maintaining a Hold rating. This adjustment reflects Jefferies’ revised financial projections, particularly concerning potential debt extinguishment gains. Meanwhile, Evercore ISI reiterated its Outperform rating on the company, setting a price target of $74. These analyst ratings come in the wake of SL Green’s latest earnings report, which led to a decrease in stock value, indicating that investor expectations were not fully met.

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