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Investing.com - Stifel downgraded Simon Property Group (NYSE:SPG) from Buy to Hold while maintaining a price target of $179.00, citing valuation concerns as the stock now trades above the target at $180.66. InvestingPro data shows the stock is currently trading near its 52-week high, with an RSI indicating overbought territory.
The downgrade is not related to any change in Stifel’s view of the company’s fundamentals, according to the research note. The firm’s price target reflects a 6.0% implied capitalization rate for the mall real estate investment trust. With a market capitalization of $68.15 billion and an attractive 4.76% dividend yield, Simon Property Group maintains a GREAT financial health score according to InvestingPro’s comprehensive analysis.
Year-to-date, mall REITs have outperformed the RMS index by 3.1 percentage points, with mall REITs gaining 6.6% compared to the RMS index’s 3.5% increase. Simon Property Group has performed even better, rising 7.6% and outpacing its mall REIT peers. The company’s strong performance is reflected in its P/E ratio of 27.81, suggesting investors are willing to pay a premium for its shares.
Stifel had previously upgraded Simon Property Group following what it called the "Liberation Day sell-off" in April, believing the downward pressure on the stock at that time was excessive.
Since reaching its bottom in early April, Simon Property Group’s share price has surged 32.5%, significantly outperforming the RMS index’s 17.1% gain during the same period.
In other recent news, Simon Property Group reported strong financial results for the second quarter of 2025. The company exceeded market expectations with earnings per share of $1.70, surpassing the forecasted $1.55. Revenue also outperformed projections, reaching $1.5 billion against an anticipated $1.38 billion. S&P Global Ratings upgraded Simon Property Group to an ’A’ rating, highlighting the company’s robust operating performance and solid sector fundamentals. Simon achieved a 3.8% year-over-year increase in domestic property net operating income and improved its occupancy rate to 96.0%. In a leadership update, Eli Simon has been promoted to Chief Operating Officer, working directly with Chairman and CEO David Simon. Additionally, Stifel adjusted its price target for Simon Property Group to $179 from $180, maintaining a Buy rating after the company’s financial results. These developments reflect positively on Simon’s operational and financial strategies.
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