Phillips Edison & Company: A Strong Buy on Robust Financials and Strategic Growth

Analyst Jeffrey Spector of Bank of America Securities reiterated a Buy rating on Phillips Edison & Company (PECO – Research Report), with a price target of $41.00.

Jeffrey Spector has given his Buy rating due to a combination of factors reflecting Phillips Edison & Company’s solid financial performance and promising growth prospects. Despite a slight increase in interest expenses, the company’s core Funds From Operations (FFO) per share aligned closely with expectations, buoyed by robust revenue growth from strong leasing spreads and stable occupancy gains year-over-year. Spector acknowledges the company’s proactive approach to managing bad debt, which remains within projected limits, and reaffirms PECO’s 2024 core FFO guidance. Furthermore, he emphasizes PECO’s strategic acquisitions, targeting annual purchases with attractive returns that are accretive from the first year.

PECO’s leasing activity also underpins Spector’s positive outlook, with significant lease signings and a record-setting increase in new inline leasing spreads indicative of a strong demand for anchor spaces — the strongest seen in over two decades. The company’s occupancy levels remain high, and with a strategy to push inline occupancy even further, PECO is well-positioned to negotiate favorable lease terms. Additionally, Spector notes the company’s healthy acquisition pipeline and prudent financial strategy, expecting to utilize its credit lines for near-term deals before resorting to the unsecured bond market, supporting a sustainable growth trajectory and reinforcing the Buy rating.

TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.

Phillips Edison & Company (PECO) Company Description:

Phillips Edison & Co Inc is a real estate investment trust. It invests primarily in well-occupied, grocery-anchored neighborhood and community shopping centers. It holds an integrated in-house operating platform built on market leading expertise designed to optimize property value and consistently deliver a great shopping experience.