On Wednesday, Piper Sandler showed confidence in Brixmor Property Group Inc. (NYSE: NYSE:BRX) by increasing its price target on the company's stock. The new target is set at $33.00, up from the previous $30.00, while the firm maintains an Overweight rating on the shares.
Brixmor, a real estate investment trust, has demonstrated solid financial performance, with two consecutive quarters of positive results influenced by previously signed but not yet opened leasing agreements. The company's success is further underscored by minimal bad debt, which has accounted for only 20 basis points of year-to-date revenue.
The analyst noted that despite some quick-service restaurants and retailers experiencing a consumer pullback, Brixmor's tenants are actively pursuing growth due to the limited availability of retail spaces. The company is particularly benefiting from small shop leases under 10,000 square feet, which offer more favorable economics and are starting to impact earnings.
Brixmor's current valuation stands at a lower multiple compared to its peers, trading at 11 times versus the shopping center average of 14 times, based on the 2025 estimated consensus.
This valuation, along with the company's strong performance, suggests that Brixmor could be an attractive option for investors. Piper Sandler reiterated its Overweight rating on the stock, signaling continued optimism about the company's prospects.
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