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Simon Property Group (NYSE:SPG) stock slid 6.6% in Thursday morning trading after Q2 earnings missed the Wall Street consensus and Evercore ISI downgraded the stock to In Line from Outperform.
After recent outperformance of the stock and due to the increased complexity of the REIT’s earnings, Evercore analyst Steve Sakwa said he’s moving to the sidelines. In the past month, SPG stock rose 7.4% vs. the S&P 500’s 1.4% increase.
Simon Property’s (SPG) Q2 FFO of $2.88 came in short of Sakwa’s $2.94 estimate. Variances compared with his forecast included “much lower retailer investment income that was offset by a revaluation gain of $36M related to SPG’s stake in ABG and a gain from publicly traded equity of $5.6M (neither were part of our forecast nor part of SPG’s guidance), and higher other income and lower tax expense.”
The analyst trimmed his 2023 FFO estimate to $11.89 from $11.90 and 2024 FFO estimate to $12.16 from $12.18.
His price target slipped to $129 from $131.
The In Line rating aligns with the SA Quant rating of Hold, and contrasts with the average SA analyst rating and average Wall Street rating, both at Buy.
