- Bank of America analyst Craig Schmidt upgraded Kite Realty Group ( NYSE: KRG ) to Buy from Neutral as leasing strength, merger benefits, and its high exposure to grocers and the Sunbelt all play to the shopping center REIT's favor.
- "We believe this positions KRG well under BofA’s base case scenario for a mild recession in 2023," he wrote in a note to clients.
- The company has outperformed Schmidt's expectations on internal growth and from its merger with RPAI, that it closed over a year ago . In addition, Q3 leasing activity was better than expected and there's further upside from small shop tenants, the analyst said.
- Note that Kite Realty ( KRG ) raised its 2022 earnings guidance after its strong Q3 results.
- The BofA analyst increased his price target on the stock to $25 from $22. Kite Realty ( KRG ) stock is up 0.3% in Wednesday midday trading at $20.89.
- His Buy rating aligns with the SA Quant rating of Strong Buy and the average Wall Street rating of Buy.
- See why SA contributor Gen Alpha thinks the market is overlooking KRG's potential
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Kite Realty upgraded to Buy at BofA on leasing strength, Sunbelt exposure