Retail REIT Taubman Centers, Inc. (TCO) saw its coverage started as an "Outperform" on Wednesday by analysts at Keefe, Bruyette and Woods.
The analyst also set a 12-month price target on TCO of $37 U.S.. Taubman shares had closed at $35.27 U.S. on Tuesday.
A KBW analyst noted that "Taubman, the fourth-largest U.S. mall REIT by total market capitalization, owns the highest-quality regional mall portfolio. Taubman's recent decline in tenant sales is among the largest in the sector, given an increasing penchant for value-oriented shopping and the company's outsized investment in challenged markets.
"Nevertheless, the company still reports industry-leading sales productivity, has a strong balance sheet with modest near-term debt maturities, and is positioned to play investment offense, factors which justify the stock's premium valuation, in our opinion."
Taubman Centers shares were mostly flat in premarket trading Wednesday.
The Bottom Line
Some experts have avoided shares of TCO since last year, when the stock was trading at $53.51 U.S. The company has a dividend yield of 4.71%, based on last night's closing stock price of $35.27 U.S.
The stock has technical support in the $30 price area. If the shares can firm up, there could be overhead resistance around the $37-$40 U.S. price levels. But experts remain on the sidelines for now.
Taubman Centers, Inc. (TCO) is not recommended at this time, holding a Dividend.com DARS Rating of 3.3 out of 5 stars.
