Citi Raises Price Target for Federal Realty Investment Trust to $120.00 - What Does This Mean for Investors?
Citi recently updated its valuation model for Federal Realty Investment Trust (NYSE:FRT), increasing the price target to $120.00 from $105.00 while maintaining a Neutral rating. The revision comes after the company's second-quarter results, prompting adjustments to net asset value estimates. The rise in price target is due to a 25 basis points compression in the capitalization rate and an increase in net operating income projections.
The updated valuation reflects a 21 times multiple on projected adjusted funds from operations for 2025, higher than the average for retail peers. The unchanged 2024 estimated funds from operations support the Neutral rating. Federal Realty specializes in high-quality retail properties in major US markets.
The company reported a strong second quarter, with record Funds From Operations per share and increased occupancy rates. Wall Street firms have settled with regulators for violations. Federal Realty's consistent growth and dividend increases make it appealing for income-focused investors. With a market cap of $9.67 billion and a P/E ratio of 33.46, the stock offers stability and a 3.84% dividend yield.
For more insights and analysis on Federal Realty Investment Trust, visit InvestingPro for tips to guide your investment decisions.
