Research Alert: CFRA Maintains Buy Opinion On Shares Of Eastgroup Properties Inc.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We increase our target by $15 to $230, on a forward P/FFO of 23.6x 2026 FFO view, a slight premium to industrial peers given expected strength in re-leasing rates and shallow bay property focus. We increase our 2026 FFO estimate by $0.06 to $9.76 and increase 2027's by $0.24 to $10.54. We now see a significant new opportunity for EGP as data center suppliers were responsible for half of Q1 development YTD. Management sees this demand driving up rents for core portfolio properties from these suppliers providing HVAC, racking, and servicing to data center development. Partially due to this new end-market demand, leasing YTD has already reached 54% of the FY 25 total causing EGP to increase development start guidance by $15 million. We believe EGP has significant capital to acquire vacant properties and leverage its tenant base and leasing expertise to achieve near development level yields on properties without taking on construction risks. We maintain our Buy rating.
