On Friday, Truist Securities adjusted its outlook on Brixmor Property Group Inc. (NYSE: NYSE:BRX), a real estate investment trust, by increasing its price target on the stock to $28 from $25. The firm maintained a Buy rating on the shares.
The upward adjustment follows Brixmor's second-quarter 2024 financial results. Truist Securities revised its 2024 funds from operations (FFO) per share estimate for Brixmor to $2.15, up from the previous $2.10. The 2025 FFO per share estimate was also increased to $2.23 from $2.17.
The analyst's updated estimates suggest a year-over-year growth of 6.0% for 2024, followed by a 4.1% increase in 2025 on a normalized basis. According to the National Association of Real Estate Investment Trusts (NAREIT) standards, this translates to a 5.4% growth in fiscal year 2024 and a 4.0% growth in fiscal year 2025.
The revised price target is based on a five-year levered discounted cash flow (DCF) analysis, which yielded a figure of $27.92 using a 9.4% discount rate. Additionally, the price target takes into account a net asset value (NAV) per share of $30.51, which is derived using a forward 12-month net operating income (NOI) capitalization rate of 6.75%.
The analyst's commentary highlights the robust growth expectations for Brixmor, based on the company's recent performance and the calculated future growth rates.
InvestingPro Insights
Following Truist Securities' updated outlook on Brixmor Property Group Inc. (NYSE: BRX), the real-time data from InvestingPro provides additional context to the company's financial health and market performance. Brixmor's market capitalization stands at $7.8 billion, with a P/E ratio of 26.69, indicating how much investors are willing to pay for each dollar of earnings. This is slightly above the adjusted P/E ratio for the last twelve months as of Q2 2024, which is 28.9, suggesting a higher valuation in the recent period.
An InvestingPro Tip highlights that Brixmor has raised its dividend for four consecutive years, aligning with the company's recent performance and a dividend yield of 4.21%, which is attractive to income-focused investors. Moreover, the company's stock price has seen a strong return over the last three months, with a 17.52% total return, signaling a robust short-term performance that may interest potential investors.
InvestingPro also notes that Brixmor's stock price is trading near its 52-week high, at 97.96% of the peak, which could indicate a strong market confidence or potential caution if investors fear the stock is overvalued. With these insights, investors can better gauge Brixmor's market position and future potential. For a deeper dive into Brixmor's financial health and market performance, investors can access additional InvestingPro Tips on the platform.
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