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Investing.com - Raymond (NSE:RYMD) James raised its price target on Kimco (NYSE:KIM) to $28.00 from $25.00 on Tuesday, while maintaining a Strong Buy rating on the retail REIT. The company, with a market capitalization of $14.65 billion, currently offers a 4.63% dividend yield and has maintained dividend payments for 34 consecutive years, according to InvestingPro data.
The investment firm cited a positive outlook for Kimco’s earnings growth and potential for cap rate compression across the sector as key factors behind the increased target.
Raymond James noted that Kimco currently trades at approximately 20 times its 2024 AFFO (Adjusted Funds From Operations) estimate, while the new price target implies shares trading at 21 times the firm’s 2025 AFFO estimate.
The slight multiple expansion is warranted, according to Raymond James, given the improving earnings growth outlook for the company.
The firm maintained its Strong Buy rating on Kimco shares, emphasizing that it sees more upside potential due to the stock’s current valuation discount compared to peers in the sector. This view aligns with InvestingPro’s analysis, which currently rates Kimco’s overall financial health as "GREAT" with a score of 3.09 out of 4, suggesting the stock may be fairly valued at current levels.
In other recent news, Kimco Realty Corporation announced a $500 million notes offering due in 2036, with a 5.300% interest rate and an effective yield of 5.354%. This offering is set to settle in June 2025, pending standard closing conditions. Meanwhile, Barclays (LON:BARC) initiated coverage on Kimco with an Overweight rating, citing the company’s strength in grocery-anchored shopping centers and setting a price target of $25.00. Additionally, Stifel adjusted its outlook on Kimco, lowering the price target to $25.75 from $27.50 but maintaining a Buy rating. Stifel analysts noted the company’s confidence in raising guidance despite industry uncertainties, highlighting strong consumer traffic and leasing demand. In other developments, Estee Lauder Companies (NYSE:EL) reported a decline in earnings per share and organic sales for the third quarter of 2025. Despite these challenges, Estee Lauder remains optimistic about future growth, though investor reaction was muted. These updates provide investors with recent insights into Kimco Realty and Estee Lauder.
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