Goldman pulls bearish outlook for retail REITs (7/17/18)
By: Stephen Alpher, SA News Editor
•The bad news - at least relative to other REITs - has been priced in, says analyst Caitlin Burrows, upgrading the retail REIT sector to Neutral from Cautious.
•With fewer bankruptcies and store closings, the outlook for same-store NOI growth is stabilizing, she says. While nine out of 11 companies in her coverage universe missed guidance last year, 2018 forecasts have been more conservative and thus there have been fewer negative surprises in 2018. Investors in Washington Prime (NYSE:WPG) and PREIT (NYSE:PEI), however, should still be on the lookout for missed forecasts.
•She upgrades Macerich (NYSE:MAC) to Neutral from Sell.
•In other moves, Morgan Stanley starts coverage on Retail Value (NYSE:RVI) - just spun out of DDR - with an Overweight rating and $41 price target, suggesting about 15% upside.
•Other names of interest: CBL & Associates (NYSE:CBL), Taubman Centers (NYSE:TCO), Kimco (NYSE:KIM), Federal Realty (NYSE:FRT), Tanger Factory (NYSE:SKT) https://seekingalpha.com/news/3370615-goldman-pulls-bearish-outlook-retail-reits