Don't be caught short SL Green Realty (SLG) - Piper Sandler

Piper Sandler analyst Alexander Goldfarb raised the price target on SL Green Realty (NYSE: SLG) to $48.00 while maintaining an Overweight rating, saying the high short interest is a bullish sign.

The analyst commented, "Following our September 10 report, "Stronger Than the Market Thinks", we believe SLG's high short interest is a bullish sign. Short interest for SLG is 26.2% versus office average of 7.9% (HPP is 11.6% and VNO is 11.4%) and 4.2% for REITs overall. SLG is the most shorted name in REITland, per our most recent short interest report, and has been over 20% since the end of March 2023. Interestingly, the stock's doubling since its March 23, 2023, low of $20 has had no impact on its short interest. While SLG's leverage is high, its other short-term metrics like debt maturities, lease expirations, and committed spending are all similar or lower than peers. Hence, we don't see a catalyst to explain the outsized short interest, especially when peers face a similar or tougher outlook. Finally, unlike NY's baseball teams this season, SLG rarely whiffs when at transactional bat."

You May Also Be Interested In

• Deutsche Bank Downgrades Netskope (NTSK) to Hold on Valuation
• Gemini Space Station (GEMI) PT Lowered to $6 at Rosenblatt
• Deutsche Bank Downgrades SentinelOne Inc (S) to Hold on Valuation