SPG - Simon Property Group: Simon Says No Bargains Today
2024-06-12 07:00:00 ET
Summary
- Simon Property Group, Inc. hit the highest-level rotation target at $150/share.
- Company viewed as "HOLD" due to valuation concerns.
- Analysts have improved their targets, but we maintain $150/share PT and recommend rotation into better-valued investments.
This article was co-produced with Wolf Report.
It's been some time since we've looked closely at Simon Property Group, Inc. ( SPG ); however, the time has come for an update on the company for a basic reason - the company recently hit my highest-level rotation target, the target that would mark the REIT as a "HOLD" for me, when it moved over $150/share.
Why do I view this as such an important limit, and why do I think the company is now a "HOLD" and it should no longer be bought?
That's what we'll look at in this article and make sure to convey.
Mind you, I am not saying that this is not a good REIT.
There is, in fact, no doubt in my mind that this is a very good REIT.
But being a good REIT or a good company is never enough to be a "BUY" for me.
That's only the first step - the relevant step for any company is being at a good valuation relative to the upside the company can achieve....
Simon Property Group: Simon Says, No Bargains Today