Goldman Sachs Reinstates Buy Rating on Simon Property Group (SPG)

Goldman Sachs is out with a research report this morning, where it reinstates its Buy rating on Simon Property Group SPG; it has a $112.00 price target on the stock. The GS analysts said that they have removed the NR designation from mall REIT Simon Property and have added it to the Buy List with a 12-month price target of $112, a 15% premium to NAV, indicating a 14% total return. The positive view is based on: (1) Improving growth outlook (2) New investment activity (3) Cost of funding advantage As for valuation, the analysts remarked, “Our price target of $112 is NAV derived, using a cap rate of 6.5%, and implies a total return of 14% including a 3.2% dividend yield.”