Why Federal Realty Investment Trust Stock Slumped Almost 17% in June
Shares of Federal Realty Investment Trust (NYSE: FRT) tumbled 16.7% in June, according to data provided by S&P Global Market Intelligence. Analysts are becoming more cautious about the shopping center-focused real estate investment trust's (REIT) near-term upside potential.
Several analysts adjusted their price targets on Federal Realty last month. Truist analyst Ki Bin Kim kicked things off in early June. The analyst lowered the price target on the retail REIT from $128 per share to $125 while keeping Truist's hold rating on the stock.
Meanwhile, Credit Suisse analyst Tayo Okusanya initiated coverage on the stock last month, giving it a neutral rating and a $104 price target. On the one hand, the analyst noted that the company's expansion into mixed-use properties and its pipeline of redevelopment projects should deliver superior earnings growth compared to its peers in the shopping center sector. Further, Credit Suisse sees the potential for upside to the company's 2022 funds from operations per share estimate as it continues collecting rent deferred during the early days of the pandemic. However, the analyst also cautioned that there's some tenant credit risk if the economy weakens.
Source Fool.com
