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Investing.com - Raymond (NSE:RYMD) James upgraded Crombie REIT (TSX:CRR_u) (TSX:CRR-U) (OTC:CROMF) from Outperform to Strong Buy and set a price target of C$17.25.
The upgrade comes as Crombie’s relative outperformance versus the Canadian REIT/REOC sector unweighted average has narrowed in recent weeks, despite significantly outperforming the broader sector in the first few months of the year.
Raymond James cited the defensive nature of Crombie’s long-term duration and high credit-quality cash flows as key factors supporting the Strong Buy rating, noting the REIT is attractively valued compared to its Canadian retail peers.
The firm highlighted that Crombie is trading at a below-average P/AFFO multiple valuation versus its Canadian retail peers, potentially offering an attractive investment opportunity for income investors seeking a defensive position in an uncertain macroeconomic environment.
Raymond James also indicated Crombie could be a distribution increase candidate later this year, as its 2025E AFFO payout ratio is forecasted to trend below 80%.
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