Piper Sandler upgrades Simon Property on stronger earnings outlook

Investing.com -- Piper Sandler upgraded Simon Property Group Inc (NYSE: SPG) to "Overweight" from "Neutral," citing stronger-than-expected earnings potential and a renewed focus on its real estate portfolio.

The firm raised its price target to $205 from $175, saying Simon’s 2025 outlook highlights the underlying strength of its property assets, independent of its retail investments. The company is also ramping up investments in its B-tier malls amid strong tenant demand and sees selective opportunities in Europe despite broader economic weakness.

“Management seems increasingly comfortable throttling up on the external front, which looks to accelerate cash flow. Thus, our concerns about slowing earnings have been allayed,” analyst at Piper Sandler said.

Piper Sandler said concerns over slowing earnings, which led to its post-Labor Day downgrade, have now eased as management accelerates external investments and cash flow growth.

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