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On Wednesday, Evercore ISI updated its financial outlook for EastGroup Properties (NYSE:EGP), raising the real estate investment trust's price target from $177.00 to $188.00, while keeping an In Line rating. The adjustment follows a review of the company's second quarter results and a reassessment of several key assumptions.
The firm's revised forecast for EastGroup's fiscal year 2024 funds from operations (FFO) increased slightly from $8.27 to $8.29 per share. Additionally, the prediction for fiscal year 2025 saw a modest rise from $8.90 to $8.95 per share. This adjustment suggests an anticipated growth of 8.0%. The revised estimates incorporate a conservative expectation of rent growth, which is projected at around a negative 6% for the next year, a figure that the firm noted might be overly cautious.
Evercore ISI also provided an estimate for EastGroup Properties' third-quarter FFO at $2.06 per share, aligning with the lower end of the company's own guidance range of $2.06 to $2.12. This estimate reflects the firm's current expectations based on the available data and the recent performance of EastGroup Properties.
The updated price target and estimates are based on the latest financial data and market conditions as they relate to EastGroup Properties. The In Line rating suggests that Evercore ISI views the company's stock as fairly valued at the current level, considering the updated projections and market circumstances.
In other recent news, EastGroup Properties has been the subject of several analyst reports. Mizuho cut the company's share target to $175 from $185 due to expectations of higher net operating income (NOI) growth, primarily driven by increased rental revenue.
In contrast, RBC Capital reduced EastGroup's price target to $172 from $190, citing leasing headwinds and high interest rates. KeyBanc also lowered its price target for EastGroup to $178 from $198, despite acknowledging the company's strong position in the industrial real estate sector. Lastly, Piper Sandler cut EastGroup's stock price target to $200 from $215 but maintained an Overweight rating on the stock.
In addition to these analyst updates, EastGroup announced its 178th consecutive quarterly cash dividend of $1.27 per share. The company's consistent dividend history extends over 31 years, with an increase in the payout for 28 of those years.
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