TSX:REI.UN - Post by User
Post by
hroark7on Nov 01, 2024 5:17pm
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Post# 36293061
Matt Kornack upgrades RioCan and ups price target
Matt Kornack upgrades RioCan and ups price target RioCan REIT (REI.UN-T) with an "outperform" rating and $23 target. Average: $21.15.
Analyst: "RioCan supplants First Capital as our top total return potential in the retail segment (in part because of relative trading strength of the latter). We like REl for its strong structural organic growth potential (3-plus per cent SPNOI growth guidance), comparably cheaper valuation and limited value attributed to an established development vehicle with sizeable near-term and leverage positive completions. On the latter, REl is slated to receive $700-million in condo sales and $500-plus-million in rental development completions through 2026, providing greater certainty over earnings and helping management achieve its 8 times D/EBITDA target. REl trades at 12 times 2025 estimate FFO/u, which is a half turn discount to peers, despite offering above average growth and a largely derisked development pipeline."