Simon Property Group: Argus Research Raises PT to $185, Reiterates Buy Rating

Simon Property Group: Argus Research Raises PT to $185, Reiterates Buy Rating

In a recent development, Argus Research has upgraded its price target for Simon Property Group (NYSE: SPG) to $185, while maintaining a "Buy" rating for the stock. This move comes despite a recent downgrade from Stifel to "Hold" due to valuation concerns [1]. Argus Research's new target reflects a positive outlook on the company's fundamentals and growth prospects.

Simon Property Group, a leading mall real estate investment trust (REIT), has seen its share price surge significantly in recent months. Since reaching its bottom in early April, the stock has surged 32.5%, significantly outperforming the RMS index's 17.1% gain during the same period [1]. The company's strong performance is reflected in its P/E ratio of 27.81, suggesting investors are willing to pay a premium for its shares.

Argus Research's upgrade comes after Simon Property Group reported strong financial results for the second quarter of 2025. The company exceeded market expectations with earnings per share of $1.70, surpassing the forecasted $1.55. Revenue also outperformed projections, reaching $1.5 billion against an anticipated $1.38 billion [1]. Additionally, S&P Global Ratings upgraded Simon Property Group to an 'A' rating, highlighting the company's robust operating performance and solid sector fundamentals.

The company's steady dividend payments, with a quarterly dividend of $2.15 per share, provide a significant income stream for investors. Although the preferred stock dividend is lower at approximately $700,000 per quarter, the common stock dividend provides an additional buffer, making the preferred stock an attractive option for income investors [2].

Institutional investors have also shown confidence in Simon Property Group, boosting their holdings by 31.1%-313.1% during the first quarter [3]. The company's strong financial position is further evidenced by its recent debt issuance, with senior notes totaling $1.5 billion issued on August 13, 2025, with spreads of 60 basis points for the 5-year US Treasury yield and 88 basis points for the 10-year US Treasury yield [2].

Backtesting results indicate SPG’s performance over a 12-month period showed a 14.3% total return, outpacing the S&P 500 REIT sector’s 10.8% gain. The stock demonstrated a maximum drawdown of 18.7% during the period, with an average monthly volatility of 6.2% [3].

In conclusion, Argus Research's upgrade to a "Buy" rating and a higher price target of $185 reflects the company's robust financial health and growth prospects. Investors should closely monitor Simon Property Group's performance and developments to make informed investment decisions.

References:
[1] https://www.investing.com/news/analyst-ratings/simon-property-group-stock-rating-downgraded-to-hold-by-stifel-on-valuation-93CH-4217940
[2] https://www.ainvest.com/news/simon-property-group-preferred-stock-priced-investment-opportunity-2508/
[3] https://www.ainvest.com/news/simon-property-group-surges-trading-0-99-drop-institutional-buys-dividend-hike-push-stock-rank-212th-activity-2509/