Tanger Factory Outlet Centers stock initiated at Equalweight by Barclays

Investing.com - Barclays (LON:BARC) initiated coverage on Tanger Factory Outlet Centers (NYSE:SKT) with an Equalweight rating and a $33.00 price target on Wednesday. The company, currently trading at $30.96, has demonstrated strong financial health with an "GREAT" rating according to InvestingPro metrics.

The research firm acknowledged the positive changes implemented by the current management team since 2020, highlighting that SKT has achieved one of the highest "Sharpe Ratios" among REITs over the past five years—more than double the RMZ index.

Barclays noted that Tanger has delivered nearly 40% annual equity returns despite experiencing above-average portfolio volatility during this period.

The firm pointed to Tanger’s steady improvement in tenant base quality and its recent use of improved cost of capital to fund external growth as positive developments.

Despite these strengths, Barclays views the shares as relatively fairly valued at current levels and anticipates additional tariff-driven headwinds for outlet centers, which like malls are predominantly exposed to apparel-oriented tenants.

In other recent news, Tanger Inc. reported its Q1 2025 earnings, revealing mixed results. The company posted earnings per share (EPS) of $0.17, which fell short of the $0.21 analyst forecast. However, Tanger Inc. exceeded revenue expectations, reporting $135.36 million compared to the anticipated $122.99 million. The company also announced a new $200 million share repurchase program, replacing a previous $100 million authorization set to expire at the end of May 2025. This decision was made following the company’s annual shareholder meeting, where the election of nine directors and the ratification of Deloitte & Touche LLP as the independent registered public accounting firm were confirmed. Additionally, Tanger Inc. increased its dividend by 6.4%, reflecting confidence in its financial outlook. The company maintains a positive perspective on its full-year core FFO guidance, anticipating growth between $2.22 and $2.30 per share. Despite missing EPS expectations, Tanger Inc. continues to focus on strategic initiatives to optimize its portfolio and enhance shareholder value.

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