On Wednesday, JPMorgan made an adjustment to the price target for Rexford Industrial Realty (NYSE:REXR), increasing it to $52.00 from the previous figure of $47.00. The firm has decided to maintain a Neutral rating on the stock.
The adjustment follows a review of Rexford Industrial Realty's second-quarter earnings, leading to a slight modification in the firm's financial model for the company. JPMorgan's revised core funds from operations (FFO) per share estimates for the year 2024 now stand at $2.36, a minor increase from the previous $2.35. For the year 2025, the estimate has been slightly decreased to $2.61 from $2.62.
In addition to these changes, JPMorgan has introduced its estimate for the year 2026, predicting the core FFO per share for Rexford Industrial Realty will reach $2.86.
The new price target set for December 2025 reflects an increase and is based on a discounted cash flow model. This suggests that JPMorgan's outlook on Rexford's financial trajectory is one of steady growth over the next few years.
The maintenance of a Neutral rating alongside the price target increase indicates that, while JPMorgan sees potential for growth in Rexford's financials, it remains cautious about the stock's current valuation or prospects relative to other investment opportunities.
In other recent news, Rexford Industrial Realty's growth outlook has led to a price target increase by Evercore ISI to $55, up from $54. Evercore's analysts anticipate significant acquisition activities for the company, with projections of $300 million in acquisitions during the latter half of 2024 and $400 million in 2025. The company's core funds from operations (FFO) estimate for the fiscal year 2024 remains at $2.34, while the fiscal year 2025 core FFO estimate has been slightly adjusted to $2.60.
Rexford Industrial Realty also received a revised price target from Mizuho Securities, which decreased its target to $50 from $52 due to a forecasted decrease in net operating income for fiscal year 2025. Baird and JPMorgan followed suit, reducing their price targets to $49 and $47 respectively, all while maintaining a neutral rating.
Rexford Industrial Realty has reported robust leasing and transaction activity, with leases totaling 1.125 million square feet and the purchase of two industrial properties for a combined $143 million. The company also completed over $1 billion in acquisitions and 3.2 million square feet of leasing activity, indicating a strong first quarter. These are the latest developments providing a snapshot of the company's current financial and operational performance.
InvestingPro Insights
Following JPMorgan's updated outlook on Rexford Industrial Realty, InvestingPro data provides additional context to the stock's performance and valuation. With a market capitalization of $11.02 billion and a P/E ratio standing at 40.55, Rexford is positioned as a significant player in the industrial realty sector. The company's revenue growth is noteworthy, with a 19.93% increase over the last twelve months as of Q2 2024, underscoring the firm's robust financial health. Additionally, Rexford's gross profit margin of 77.32% reflects its efficiency in maintaining profitability amidst operational costs.
InvestingPro Tips highlight that Rexford has consistently raised its dividend for 11 consecutive years, which could be appealing for income-focused investors. Moreover, analysts expect the company to continue its trajectory of sales growth in the current year. For investors considering the long-term potential of Rexford, it's important to note that the company has been profitable over the last twelve months and has delivered a high return over the past decade.
To explore further insights and tips that could inform investment decisions regarding Rexford Industrial Realty, including additional metrics and analyst predictions, visit https://www.investing.com/pro/REXR. Interested readers can also take advantage of a special offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking even more value from the InvestingPro platform, which currently features 11 additional InvestingPro Tips for Rexford.
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