Federal Realty Investment Trust (FRT) recently acquired the Del Monte Shopping Center for $123.5 million, expanding its portfolio in California. This acquisition is expected to positively impact future revenue and investor sentiment.
The stock is currently trading at $101.19 with a bearish RSI of 35.27, indicating potential undervaluation. The MACD is negative at -1.57, suggesting bearish momentum. However, the recent acquisition and analyst upgrades could act as catalysts for a rebound.
Analysts have raised the price target to $114, maintaining a Buy rating. The average 12-month price target is $118.62, indicating confidence in the stock's upside potential.
The stock is trading near the Fibonacci pivot point of $103.64, with resistance levels at $106.02 and $107.49. A breakout above these levels could signal a bullish trend.
Based on the acquisition news, analyst upgrades, and technical indicators, the stock is expected to rise to $106.50 next week. This represents a buying opportunity as the stock is undervalued with positive catalysts.
Recommendation: Buy FRT with a target price of $106.50.
The price of FRT is predicted to go up -9.21%, based on the high correlation periods with AKAM. The similarity of these two price pattern on the periods is 95.9%.
FRT
AKAM
Federal Realty reports peer-leading population density and annual household income in proximity to its centers, providing a strong demographic base for its tenants.
Federal Realty could benefit as the US cuts its physical retail presence, attracting quality tenants to its properties as inferior centers go under.
Federal Realty continues to sign new leases at robust double-digit spreads, suggesting solid internal growth prospects upon lease expiration.
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