Simon Property Group: Truist Securities Maintains Hold, Raises PT to $169

Simon Property Group: Truist Securities Maintains Hold, Raises PT to $169

Simon Property Group (SPG) saw a notable change in analyst sentiment following its Q2 2025 results. While the company's financial performance was robust, with a 2.8% year-over-year (YoY) increase in top-line revenue to $1.5 billion and a 4.2% YoY rise in net operating income (NOI), the consensus rating remained largely unchanged. However, Truist Securities recently raised its price target (PT) to $169, maintaining a Hold rating.

The company's real estate funds from operations (FFO) grew 4.1% YoY to $3.05 per share, surpassing consensus estimates by 33 basis points. Analysts expect a real estate FFO of $12.53 per share for FY25, down 3.5% YoY. Despite the positive earnings, the stock has seen conflicting sentiments among analysts. While some firms like Stifel and Evercore ISI have maintained a Buy rating, others like Scotiabank and BMO Capital have lowered their price targets.

Truist Securities' Hold rating with a raised PT of $169 reflects the mixed signals from other analysts. The company's strong Q2 performance and the expected real estate FFO for FY25 are positive indicators, but the market's response to the latest earnings call and the company's dividend increase to $2.15 per share from $2.05 per share has been cautious. The Hold rating suggests a wait-and-see approach from Truist Securities, indicating that the market needs more clarity on the company's long-term growth prospects.

Overall, Simon Property Group's Q2 2025 results were solid, but the market's reaction has been tempered by the mixed analyst sentiments and the Hold rating from Truist Securities. Investors should continue to monitor the company's performance and analyst ratings as more data becomes available.

References:
[1] https://www.ainvest.com/news/simon-property-group-analysts-views-spg-stock-2508/