SPG Has A Stable Cash Flow Growth

Analysts at Goldman Sachs resume coverage of Simon Property Group Inc SPG with a "buy" rating. The target price for SPG is set to $95. Goldman Sachs has indicated that SPG offers a total return of 12.7%. The analysts favor SPG as the company generates stable cash flow growth with the help of “premier assets with high credit quality.” “Simon has one of the best positioned balance sheets in the REIT Industry, with $3.6 bn of cash, of which we expect $2 bn to be used to further reduce SPG's industry low leverage,” the analysts say. “We have a long-term favorable view of class A mall owners as the segment should benefit from barriers to entry; simply put, we see little new development in Simon's core markets, which should enhance the long-term value of its assets. ..Last, we see the potential for dividend growth as SPG has been paying out the minimum to conserve cash, so an increase in yield could happen later this year, or in 2011, a positive for the shares,” the analysts add. More Analyst Ratings here