Retail Opportunity Investments (ROIC) PT Raised to $20 at BTIG

BTIG analyst Michael Gorman raised the price target on Retail Opportunity Investments (NASDAQ: ROIC) to $20.00 (from $19.00) while maintaining a Buy rating.

The analyst commented, "We are updating estimates and raising our price target for ROIC, reflecting management's reaffirmed guidance, positive 3Q results, and the potential for increased transaction activity over the coming year. Our new FFO estimates of $1.00/sh for 2021 and $1.10/sh for 2022 compare to $1.01 and $1.09 previously and represent 10% FFO/sh growth vs. the 8% Strip Center average. The retail transaction market has continued to accelerate, as has ROIC's own activity. ROIC closed on $43.9M of dispositions in Q3, finalizing its exit from the Sacramento market, bringing YTD dispositions to $69.7M. We expect the company will allocate the combined sale proceeds, coupled with over $46M raised on the ATM YTD, toward the two grocery-anchored Shopping Centers in Seattle currently under agreement for $62.3M. This is in addition to the $60.4M of acquisitions already closed in 2H21. We believe ROIC's 97% grocery and drug store-anchored portfolio has demonstrated resiliency relative to the Strip Center peer group during severe disruption, with growing occupancy and ABR/SF, over 374K SF of leasing volumes in Q3 at 10.9% spreads on new contracts, and a swift return to the transaction market despite last year's disruption. The shares are up 42% YTD on a TR basis versus 55% for the Strip Center REIT peer group, and trade at a 17% premium. We maintain our Buy rating and are raising our price target to $20 from $19 previously."

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