On Thursday, Citi updated its outlook on Tanger Factory (NYSE:SKT) Outlet Centers (NYSE:SKT), increasing its price target to $30.00 from the previous $24.00. The firm maintained a Neutral rating on the stock. The adjustment reflects a positive shift in the company's financial forecasts, driven by improving fundamentals and recent strategic activities.
In a statement, the firm attributed the revised price target to a combination of better-than-expected financial performance and the impact of recent acquisitions and developments. The new target is based on a multiple of 14.5 times the estimated funds from operations (FFO) for the year 2024.
Citi's analysis indicates an improvement in Tanger Factory Outlet Centers' net asset value (NAV) and a reduction in the capitalization rate applied, which are factors contributing to the higher price target. The firm's decision to apply a higher multiple compared to the previous target price is a direct result of these adjustments.
The updated price target suggests that Citi sees potential for Tanger Factory Outlet Centers' stock value to increase, although the Neutral rating indicates a cautious stance on the stock's current position in the market.
The increased price target of $30.00 offers a new perspective for investors on the potential value of Tanger Factory Outlet Centers, as it continues to navigate the retail market and expand its business operations.
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