Alexander & Baldwin (ALEX) Reiterated at Market Perform by Citizens

Citizens analyst Mitch Germain reiterated a Market Perform rating on Alexander & Baldwin (NYSE: ALEX).

The analyst commented, "Alexander & Baldwin announced it is going private in a transaction valuing the company at $2.3B; maintain our Market Perform rating. This announcement comes as a surprise, in our view, as the company was under no operational or balance sheet duress and had not announced strategic alternatives. However, we had long viewed growth prospects as limited, due to competition, geographic, and land constraints in Hawaii, while the investment community tends to penalize diversified portfolios, with the thought that management cannot be operationally adept across multiple asset classes. The transaction represents a 40% premium to the last closing price, suggesting no likely topping bid. We believe this transaction crystalizes value for the shares as it implies a 17.6x multiple on 2026 consensus FFO/share, compared to shopping center REITs at 12.7x and industrial REITs at 19.1x, representing fair value, in our view."

For an analyst ratings summary and ratings history on Alexander & Baldwin click here. For more ratings news on Alexander & Baldwin click here.

Shares of Alexander & Baldwin closed at $15.14 yesterday.

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