Valued at a market cap of $14.4 billion, Kimco Realty Corporation (KIM) is a real estate investment trust (REIT) that owns and operates high-quality, open-air, grocery-anchored shopping centers and mixed-use properties. The Jericho, New York-based company's portfolio is strategically concentrated in the first-ring suburbs of the top major metropolitan markets.
This retail REIT has underperformed the broader market over the past 52 weeks. Shares of KIM have dropped 3.6% over this time frame, while the broader S&P 500 Index ($SPX) has gained 16.6%. Moreover, on a YTD basis, the stock is down 9.4%, compared to SPX’s 7.8% return.
Narrowing the focus, KIM has also lagged behind the Real Estate Select Sector SPDR Fund’s (XLRE) marginal uptick over the past 52 weeks and 1.8% rise on a YTD basis.
On Jul. 31, shares of KIM closed down 3.1% after its mixed Q2 earnings release. The company reported revenue of $525.2 million, a 5% increase year-over-year, but marginally below the consensus estimate. This revenue miss might have dampened investor confidence. On the brighter side, its FFO per share of $0.44 climbed 7.3% from the year-ago quarter, topping analyst expectations by a penny. Moreover, noting solid growth in net income and FFO, KIM raised its fiscal 2025 FFO per share guidance in the range of $1.73 to $1.75.
For the current fiscal year, ending in December, analysts expect KIM’s FFO to grow by almost 4.9% year over year to $1.73 per share. The company’s earnings surprise history is promising. It exceeded or met the consensus estimates in each of the last four quarters.
Among the 23 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on eight “Strong Buy,” and 15 “Hold” ratings.
This configuration is more bullish than a month ago, with seven analysts suggesting a “Strong Buy” rating.
On Jul. 31, Simon Yarmak from Stifel Financial Corp. (SF) maintained a “Buy” rating on KIM with a price target of $25.25, implying an 18.9% potential upside from the current levels.
The mean price target of $24.32 represents a 14.6% premium from KIM’s current price levels, while the Street-high price target of $30 suggests an ambitious upside potential of 41.3%.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
