RBC Capital lowers EastGroup Properties target following business update

Published 02/01/2025, 13:02
RBC Capital lowers EastGroup Properties target following business update

On Thursday, RBC Capital Markets adjusted its outlook on EastGroup Properties (NYSE:EGP), a company specializing in industrial property investments in sunbelt markets.

Analysts at the firm reduced the price target on the company's stock to $183 from the previous $186 while maintaining a Sector Perform rating.

The revision follows EastGroup Properties' recent business update and discussions at the NAREIT meeting. RBC Capital's analysts acknowledged that the company remains strongly positioned within the shallow bay industrial sectors of the sunbelt region.

"However, the company has recently been navigating a few tenant disruptions that will likely have a modest impact to the near-term earnings run-rate," analysts at the firm said.

As a result of these tenant disruptions, RBC Capital has revised its Funds from Operations (FFO) estimates downward, which in turn led to the lowered price target. Despite these adjustments, the analysts have chosen to keep their Sector Perform rating for EastGroup Properties unchanged.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.