Wall Street Analysts Bullish on Federal Realty Investment Trust

Federal Realty Investment Trust (FRT) has underperformed the broader market over the past 52 weeks, with a 14.4% decline compared to the S&P 500 Index's 14.3% gain. However, the company reported Q2 results that topped Wall Street expectations, with funds from operations at $165.5 million, or $1.91 per share, beating the consensus estimate of $1.73 per share. Analysts expect FRT's FFO to grow 5.9% year over year to $7.17 per share, and the consensus rating is a "Moderate Buy" based on nine "Strong Buy," one "Moderate Buy," and eight "Hold" ratings. The mean price target of $107.50 represents an 11.2% premium from FRT's current price levels.

Federal Realty Investment Trust (FRT), a real estate investment trust (REIT) with a market cap of $8.3 billion, has underperformed the broader market over the past 52 weeks. The company's shares have declined by 14.4% compared to the S&P 500 Index's 14.3% gain. However, on a year-to-date (YTD) basis, FRT has fallen by 13.6% while the S&P 500 has risen by 9%. Moreover, FRT has lagged behind the Real Estate Select Sector SPDR Fund (XLRE), which has seen a 1% uptick over the past 52 weeks and a 2.5% return YTD [1].

Despite this underperformance, FRT reported Q2 results that exceeded Wall Street expectations. The company's funds from operations (FFO) stood at $165.5 million, or $1.91 per share, beating the consensus estimate of $1.73 per share. Net income was $153.9 million, or $1.78 per share, and revenue came in at $311.5 million, slightly above forecasts of $310.7 million. The company projects full-year FFO in the range of $7.16 to $7.26 per share [1].

Analysts expect FRT's FFO to grow by 5.9% year over year to $7.17 per share for the current fiscal year. The consensus rating is a "Moderate Buy," based on nine "Strong Buy," one "Moderate Buy," and eight "Hold" ratings [1]. Evercore ISI analyst Steve Sakwa reaffirmed an "Outperform" rating on FRT while slightly lowering the price target from $109 to $107, a 1.8% reduction. The mean price target of $107.50 represents an 11.2% premium from FRT's current price levels, while the Street-high price target of $115 suggests an upside potential of 18.9% [1].

In conclusion, while FRT has underperformed the broader market, its Q2 results indicate promising signs. Analysts remain optimistic about the company's prospects, with a majority rating it as a "Strong Buy" or "Moderate Buy." However, investors should closely monitor the company's performance and the broader economic conditions that may impact its future growth.

References:
[1] https://finance.yahoo.com/news/wall-street-analysts-bullish-federal-111125907.html
[2] https://www.barchart.com/story/news/34270430/are-wall-street-analysts-bullish-on-federal-realty-stock