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Jefferies raised its price target on Simon Property Group (NYSE:SPG) to $178.00 from $176.00 on Monday, while maintaining a Buy rating on the real estate investment trust. According to InvestingPro data, the stock currently trades at $156.90, with analyst targets ranging from $159 to $220, suggesting potential upside. The company, with a market capitalization of $59.17 billion, stands as a prominent player in the Retail REITs industry.
The price target increase follows Jefferies’ adjustment to its earnings forecasts for the mall operator. The firm lowered its 2025 funds from operations (FFO) per share estimate to $12.43 from $12.59, citing a "non-core miss on FFO" in the first quarter of 2025. Notably, InvestingPro analysis shows the company maintains a strong financial health score of "GOOD," with two analysts recently revising their earnings estimates upward.
Despite the near-term adjustment, Jefferies raised its 2026 FFO per share estimate to $13.13, representing 5.6% year-over-year growth. The firm attributed the improved outlook to expectations for better net operating income growth.
The revised 2025 FFO estimate of $12.43 falls within Simon Property Group’s own guidance range of $12.40 to $12.65 and slightly above the consensus estimate of $12.38.
The higher price target reflects Jefferies’ more optimistic view of Simon Property Group’s earnings potential in future years, supporting the firm’s continued Buy recommendation on the stock.
In other recent news, Simon Property Group has completed its redomestication from Delaware to Indiana, a move approved by shareholders and effective as of May 15, 2025. This transition does not alter the company’s headquarters, operations, or management structure. The company’s common stock will continue to trade on the New York Stock Exchange under its existing ticker. In financial updates, Simon Property Group reported first-quarter 2025 funds from operations (FFO) per share of $2.67, which was below the consensus estimate of $2.91. However, the Real Estate FFO per share was $2.95, surpassing the average analyst prediction of $2.90. Stifel analysts have increased their price target for the company to $180, maintaining a Buy rating, while Truist Securities holds a steady price target of $168 with a Hold rating. Simon Property Group’s management has maintained its 2025 Real Estate FFO guidance, anticipating net operating income growth but also acknowledging increased interest expenses. The company is also involved in a merger through its stake in Catalyst Brands, which is expected to bring cost savings and synergies.
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