Jefferies Raises Price Target on Weingarten (WRI), Encourages Investors to Wait & See
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Price: $31.44 --0%
Rating Summary:
5 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 21 | New: 20
Rating Summary:
5 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 21 | New: 20
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Jefferies is maintaining its Hold rating on shares of Weingarten (NYSE: WRI) while increasing its price target from $20 to $22.
The firm believes investors should wait and see if management can reach its targeted goal of 4-5 percent same store net operating income growth as a majority of that growth is factored off of leases signed by tenants, which will commence upon move-in. Jefferies notes the level of tenant fallout and the signing of additional leases will make up the remaining growth.
The company doesn't plan on closing on any more acquisitions in 2011, but does expect to top its previous 2011 disposition guidance of $100M and end the year between $150-$200 million.
An analyst at Jefferies comments, "With regards to 2012, mgmt expects acquisitions to remain anemic given continued cap rate compression in the shopping center space. This suggests acquisitions could come in below 2012 guidance of $50 million as initially outlined in WRI's Investor Day in April '11. Dispositions, however, are expected to be $300-$400 million at cap rates between 7.0-7.5 percent."
Jefferies is raising its FY11 FFO estimate from $1.64 to $1.77 and is reaffirming its FY12 estimate of $1.85.
For more ratings news on Weingarten click here and for the rating history of Weingarten click here.
Shares of Weingarten closed at $23.21 yesterday.
The firm believes investors should wait and see if management can reach its targeted goal of 4-5 percent same store net operating income growth as a majority of that growth is factored off of leases signed by tenants, which will commence upon move-in. Jefferies notes the level of tenant fallout and the signing of additional leases will make up the remaining growth.
The company doesn't plan on closing on any more acquisitions in 2011, but does expect to top its previous 2011 disposition guidance of $100M and end the year between $150-$200 million.
An analyst at Jefferies comments, "With regards to 2012, mgmt expects acquisitions to remain anemic given continued cap rate compression in the shopping center space. This suggests acquisitions could come in below 2012 guidance of $50 million as initially outlined in WRI's Investor Day in April '11. Dispositions, however, are expected to be $300-$400 million at cap rates between 7.0-7.5 percent."
Jefferies is raising its FY11 FFO estimate from $1.64 to $1.77 and is reaffirming its FY12 estimate of $1.85.
For more ratings news on Weingarten click here and for the rating history of Weingarten click here.
Shares of Weingarten closed at $23.21 yesterday.
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