JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Friday, UBS analyst Michael Goldsmith initiated coverage on Brixmor Property Group Inc. (NYSE: NYSE:BRX), a real estate investment trust, with a Buy rating and a price target of $29.00. Currently trading at $25.61 with a market capitalization of $7.8 billion, the company has shown strong momentum with a 23% return over the past year. Goldsmith’s assessment is based on the company’s visibility into mid-single digit funds from operations (FFO) growth paired with what he considers an attractive valuation. According to InvestingPro, analyst targets range from $26 to $39, suggesting potential upside.
Goldsmith highlighted Brixmor’s strong Signed Not Opened (SNO) pipeline, which at 410 basis points (bps) exceeds the average of its peers, which stands at 320 bps. This pipeline is expected to provide a clear view into the company’s future rent growth. Additionally, Brixmor is currently leasing at rates 16% above their 2026 expirations and 13% above their 2027 expirations. InvestingPro data reveals the company maintains a healthy gross profit margin of 75.2% and has consistently raised its dividend for four consecutive years, demonstrating operational strength.
The UBS analyst also pointed to Brixmor’s robust redevelopment pipeline, which includes 37 ongoing projects with a total investment of $391 million, anticipated to generate returns exceeding 10%. These projects are projected to contribute to the company’s same property net operating income (NOI) growth over the next three years, which is forecasted at 4.5%, surpassing the peer average of 3.8%.
Goldsmith’s forecast for Brixmor’s FFO per share stands at $2.36 for 2026 and $2.48 for 2027, slightly above the consensus estimates of $2.33 and $2.43, respectively. He suggests that based on a regression of Retail REIT FFO earnings growth against valuation, Brixmor’s expected FFO growth justifies a multiple of 13.5 times, which is above its current valuation multiple of 11.1 times.
Lastly, the analyst noted that Brixmor’s shares are trading at a 15% discount to its Shopping Center peers. This discount is narrower than the five-year average of 18%, despite Brixmor’s faster growth trajectory. Goldsmith sees potential for valuation upside as the company’s earnings model is validated. However, InvestingPro analysis suggests the stock is currently trading above its Fair Value, with a P/E ratio of 24.1x and a PEG ratio of 1.87x. For deeper insights into Brixmor’s valuation and access to additional ProTips, including comprehensive financial health scores and peer comparison tools, explore the full Pro Research Report available on InvestingPro.
In other recent news, Brixmor Property Group reported its Q1 2025 earnings, aligning with analyst expectations. The company posted an earnings per share (EPS) of $0.23, matching forecasts, while its revenue slightly exceeded predictions at $337.51 million. Despite these results, the company’s stock experienced a decline in after-hours trading. Brixmor maintained a strong occupancy rate of 94.1% and reported a same-property net operating income (NOI) growth of 2.8%. Notably, the company reaffirmed its guidance for the year, expecting same-property NOI growth between 3.5% and 4.5% and forecasting funds from operations (FFO) between $2.19 and $2.24. Additionally, Brixmor continues to focus on tenant growth, with $60 million in signed but not yet commenced projects expected to accelerate base rent in the latter half of 2025. The company also highlighted its strategic positioning to capture a significant share of new store openings. Analysts at firms like KeyBanc Capital Markets and Bank of America have shown interest in the company’s handling of tenant disruptions and growth plans.
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