Analyst Dori Kesten of Wells Fargo maintained a Buy rating on SITE Centers (SITC – Research Report), retaining the price target of $15.50.
Dori Kesten’s rating is based on multiple positive factors surrounding SITE Centers’ (SITC) strategic financial maneuvers. Kesten anticipates that the company’s sell-down of its legacy assets will outpace the market consensus, both in terms of speed and at valuations that will contribute positively to the company’s finances. The predicted quicker-than-expected asset disposition is supported by a target price of $15.50, which is reinforced by a sum-of-the-parts valuation approach that applies a 7.5% capitalization rate to these legacy assets. This valuation suggests an upside potential from the current trading price.
Furthermore, Kesten sees upcoming transaction announcements as potential catalysts for the stock. The expectation is that these transactions will disclose favorable capitalization rates within the range of 7-7.5%, indicating efficient asset management and an attractive investment profile. Additionally, the analyst notes an observed arbitrage opportunity, where the market appears to undervalue SITE Centers’ legacy assets compared to the cap rates achieved in recent sales. Finally, the planned spin-off of the convenience property portfolio into a separate entity, Curbline Properties (CURB), is viewed as a strategic move that could enhance value, particularly if accelerated asset sales allow SITC to eliminate a preferred investment in CURB. These factors collectively underpin Kesten’s Buy rating on SITC’s stock.
According to TipRanks, Kesten is a 4-star analyst with an average return of 8.0% and a 67.69% success rate. Kesten covers the Real Estate sector, focusing on stocks such as SITE Centers, Ryman, and InvenTrust Properties.
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SITE Centers (SITC) Company Description:
SITE Centers Corp. is a real estate investment trust, which engages in the acquisition, development, lease, and management of shopping centers. It operates through the Shopping Centers and Loan Investments segments. The company was founded in 1965 and is headquartered in Beachwood, OH.
