CIBC Capital Markets raised its price target on Primaris REIT (PMZ-UN.TO) to C$25 from C$22.
Analyst Tal Woolley maintained an Outperformer rating on shares of the Canadian shopping center-focused real estate company.
"We believe the outlook for PMZ can continue to improve in a Canadian retail environment with a lack of traditional department store anchor tenants," Woolley said in a note to clients.
"We also expect PMZ to soon offer another positive leasing update on its 1.3 million square feet of vacant anchor space," the analyst said.
CIBC's estimate of the company's return on invested capital average 7.4% over the next two years. That's "well ahead of the balance of our REIT coverage (averaging 5.8%), delivering higher returns needed for the higher operating risk with enclosed mall assets (with its discretionary spending exposure and higher capital intensity)," Woolley said.
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