Goldman Sachs Reiterates Buy Rating on Taubman Centers Inc. (TCO)

Goldman Sachs is out with a research report this morning, where it reiterates its Buy rating on Taubman Centers Inc. TCO; it has a $52.00 price target on the stock. The GS analysts cited a recent tour of the Short Hills Mall with TCO's COO, where the key takeaways included: 1. “The positive sales trend in December continues. 2. Less promotion activity than last year. 3. Rent growth is still lagging. Goldman analysts also expressed concerns about the outlook for weak rent growth, given long-term oversupply (+4% per annum over the last decade). As for valuation, the analysts remarked, “The malls remain attractive on a relative valuation basis, trading at a 7% discount to REITs avg. We maintain our 12-month, NAV based PT of $52.”