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On Tuesday, Stifel analysts increased their price target on Brixmor Property Group (NYSE:BRX) shares to $31.25, while maintaining a Hold rating on the stock. According to InvestingPro data, the stock currently trades at $26.18, with analyst targets ranging from $27 to $35. InvestingPro analysis indicates the stock is currently trading above its Fair Value. The adjustment reflects the company’s positive financial outlook, with Stifel’s analyst noting Brixmor’s expectation for Funds From Operations (FFO) to reach $2.19-$2.24, indicating approximately 3.5% year-over-year growth at the midpoint. Additionally, Brixmor anticipates Same-Store Net Operating Income (SS NOI) growth of between 3.5% and 4.5% for the year. This aligns with InvestingPro data showing steady revenue growth of 2.91% over the last twelve months, with two analysts recently revising their earnings estimates upward.
The company’s guidance also highlighted that revenues considered uncollectible are projected to represent 75-110 basis points of the total expected revenues for 2025. This forecast aligns closely with market expectations, as the consensus estimate for Brixmor’s FFO in the fiscal year 2025 stood at $2.22.
During the last quarter, Brixmor successfully raised capital through its At-The-Market (ATM) offering program. The company sold 3.4 million shares, generating $96.6 million in proceeds at an average price of approximately $28.77 per share. This follows a previous ATM activity in the fiscal year 2024, wherein 4.1 million shares were sold at an average price of around $28.62, resulting in $116.6 million of proceeds. The company maintains a strong dividend program, with InvestingPro data showing a current dividend yield of 4.39% and consistent dividend growth over the past four years.
These financial maneuvers are part of Brixmor’s ongoing strategy to strengthen its balance sheet and fund its operations and growth initiatives. The increase in the price target by Stifel reflects the firm’s analysis of Brixmor’s financial health and market activities, suggesting a stable outlook for the company’s stock while it continues to navigate the fiscal year. InvestingPro analysis supports this view, assigning Brixmor a "GOOD" overall financial health score, with particularly strong marks in profitability metrics. For deeper insights into Brixmor’s financial health and growth potential, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Brixmor Property Group has been the subject of several noteworthy developments. Analysts from Evercore ISI have upgraded their rating for Brixmor from "In Line" to "Outperform," following a strong fourth-quarter performance, with revenue up by 4.2% and same-store net operating income growing by 4.7%. This comes on the heels of BMO Capital also upgrading Brixmor’s stock to "Outperform," with a new price target of $33.00, based on expectations of robust growth in funds from operations for the year 2025.
In addition, Brixmor has extended the employment agreement of its Executive Vice President and Chief Investment Officer, Mark T. Horgan, until May 19, 2028, with an increase in his base salary and annual equity compensation level. This move reflects the company’s commitment to retaining its top leadership amidst a competitive market for executive talent within the real estate sector.
On the operational front, Brixmor reported a strong financial performance in the third quarter of 2024, achieving record occupancy levels and executing a significant amount of new and renewal leases. The company also raised its full-year funds from operations guidance and expects same property net operating income growth to exceed 4% in 2025. These are the recent developments that investors should be aware of.
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