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On Tuesday, Stifel analysts upgraded Simon Property Group (NYSE:SPG) stock from Hold to Buy, despite reducing the price target to $168.50 from $178.00. The adjustment in the price target is based on a 13.0x multiple on the estimated funds from operations (FFO) for the year 2026 and a 6.25% implied capitalization rate. According to InvestingPro data, SPG maintains a solid 82.5% gross profit margin and has maintained dividend payments for 32 consecutive years, demonstrating strong operational efficiency.
Stifel's analysts highlighted the year-to-date performance of Mall Real Estate Investment Trusts (REITs), which have lagged behind the broader RMS, declining 18.6% compared to an 11.9% drop in the RMS. Simon Property Group has slightly outperformed the Mall sector with a lesser decline of 17.5%. The company currently offers a notable 6% dividend yield, with InvestingPro analysis showing 13 additional key insights about the stock's value proposition.
Since March 3, Simon Property Group's shares have experienced a significant pullback, dropping 26.2% versus a 16.4% decrease in the RMS. This downturn has brought the company's shares near their 52-week low, a factor contributing to the analysts' decision to upgrade the stock to Buy.
The upgrade reflects a change in stance towards Simon Property Group, suggesting a more favorable outlook on the stock by Stifel analysts despite the recent underperformance in the market. Simon Property Group's stock movement will continue to be monitored closely by investors following this rating change.
In other recent news, Springer Nature reported a 5% increase in revenue for the first quarter of 2025, reaching €1,847 million. The company also saw a 7% growth in adjusted operating profit, driven by its focus on Open Access and AI technologies. Springer Nature has set its revenue guidance for 2025 between €1,885 million and €1,935 million. In the real estate sector, Evercore ISI issued a statement warning of continued volatility due to unexpected high tariffs affecting the market. Despite this, Evercore analysts recommended cautious investment in some REITs, such as EastGroup Properties and Simon Property Group, citing their solid balance sheets.
Simon Property Group announced the upcoming retirement of Independent (LON:IOG) Director Allan B. Hubbard, effective May 2025. Hubbard has been a board member since 2009, contributing significantly to the company's governance and strategic direction. David Simon, CEO of Simon Property Group, expressed gratitude for Hubbard's service and leadership. These recent developments provide insight into the financial and strategic activities of these companies.
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