Federal Realty Investment Trust Price Target Lowered to $96 by Mizuho

Mizuho has adjusted its price target for Federal Realty (FRT) to $96, maintaining a Neutral stance. The company is seen as adequately positioned to support initial fiscal 2025 guidance increase. Analysts forecast an average target price of $109.38, with a high estimate of $130.00 and a low estimate of $96.00, indicating an upside of 15.94%.

Investment bank Mizuho has revised its price target for Federal Realty (FRT) to $96, maintaining a Neutral stance on the stock. The company, known for its shopping center real estate investment trusts, is seen as adequately positioned to support an initial fiscal 2025 guidance increase. Analysts forecast an average target price of $109.38, with a high estimate of $130.00 and a low estimate of $96.00, indicating an upside of 15.94% [2].

Federal Realty Investment Trust (FRT) reported a strong first quarter with earnings per share of $1.70, exceeding both internal expectations and the prior year. The company achieved a high lease rate of 95.9%, with minimal exposure to retail bankruptcies, indicating strong tenant retention and property performance. Foot traffic increased year-over-year across key markets, including a 6% rise in Washington DC, 3% at Santana Row, and 11% in Boston, showcasing consumer resilience. FRT executed 91 retail leases totaling 430,000 square feet, including a significant deal with Lifetime Fitness at Santana Row, highlighting robust leasing activity. The company has a strong liquidity position with approximately $1.5 billion available, providing flexibility for future investments and capital allocation decisions [2].

However, the economic environment remains unpredictable, with potential inflationary pressures due to ongoing government policies and tariff uncertainties. Higher property expenses were reported, primarily driven by unexpected snow-related costs, impacting overall financial performance. The transaction market is affected by tariff announcements, creating challenges in underwriting and evaluating new opportunities with confidence. There is a lack of clarity on construction costs due to tariffs, complicating the predictability of redevelopment and residential development projects. Despite strong performance, the company faces challenges in maintaining high leasing volumes due to already high occupancy rates, which may normalize in the future [2].

Mizuho's revised price target reflects the company's cautious approach to the current economic environment while acknowledging FRT's strong operational performance and robust leasing activity. Analysts' consensus remains bullish, with an average target price suggesting significant upside potential. Investors should closely monitor FRT's future earnings reports and the broader economic trends to assess the validity of these targets [2].

References:

[1] https://www.marketbeat.com/instant-alerts/filing-mizuho-financial-group-inc-nysemfg-shares-purchased-by-cerity-partners-llc-2025-07-17/
[2] https://www.gurufocus.com/news/2983230/mizuho-adjusts-price-target-for-federal-realty-frt-to-96-frt-stock-news