Analyst Explains Why They Downgraded Their Rating on Simon Property (SPG)

Mizuho Securities analyst Haendel St. Juste downgraded Simon Property (SPG) to Hold on February 25 and set a price target of $193. The company’s shares closed yesterday at $183.28.

Juste observed:

“We are raising our 1Q19 / 2019 FFO estimates after SPG disclosed (in its recently filed 10-K) $68M of insurance settlement income in 1Q19. The settlement dates back to flood damage sustained at and is yet another example of the multiple Other Income levers SPG has at is disposable, a key risk we recently outlined in our SPG downgrade (to Neutral). Updated model attached.”

According to TipRanks.com, Juste is a 3-star analyst with an average return of 1.5% and a 52.7% success rate. Juste covers the Financial sector, focusing on stocks such as Apartment Investment & Management, First Industrial Realty Trust, and Mid-America Apartment.

Currently, the analyst consensus on Simon Property is a Moderate Buy with an average price target of $196.60.

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Based on Simon Property’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $570 million. In comparison, last year the company had a net profit of $573 million.

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Simon Property Group, Inc. operates as a self-administered and self-managed real estate investment trust. It owns, develops and manages retail real estate properties which primarily consist of regional malls, premium outlets and mills.