JPMorgan raises Brixmor Property target to $28, maintains Neutral By Investing.com

On Tuesday, JPMorgan adjusted its outlook on Brixmor Property Group Inc (NYSE: NYSE:), a real estate investment trust specializing in shopping centers, by increasing its price target to $28 from $26, while keeping a Neutral rating on the stock. The firm’s assessment indicates a favorable stance on the strip center sector, with Brixmor seen as well-positioned within this group.

The revised price target reflects a more optimistic view of Brixmor’s growth potential, citing a strong leasing pipeline and the possibility of double-digit rent spreads. JPMorgan highlighted the company’s visible redevelopment efforts as likely contributors to both funds from operations (FFO) and net asset value (NAV) per share growth.

Brixmor’s strategic positioning ahead of the COVID-19 pandemic was marked by a focus on building out its redevelopment pipeline and balancing asset sales with acquisitions. These strategies, according to JPMorgan, initially hindered the company’s earnings momentum. However, the current perspective suggests that Brixmor has navigated past challenges and is now poised for growth.

The company’s portfolio, which includes exposure to grocers and value-oriented retailers, is considered potentially resilient in the event of an economic downturn. This aspect of Brixmor’s business model could provide a marginal advantage if a recession occurs.

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