Stock Price & Analysis

Sell PECO stock as it has broken below its 200-day moving average and shows bearish momentum. Hold until it regains upward trend strength.

The price prediction for PECO stock in 2025 is expected to reach $38 to $40. This forecast is supported by strong financial performance, including a core FFO forecast of $2.52-$2.59 for FY25, aligning with market consensus. Analysts maintain a Moderate Buy rating with a price target of $39.83, indicating an 8.17% upside potential.

The S1 support level for PECO Stock is $34.51 ,The R1 resistant level for PECO Stock is $35.8.

As of the end of day on 2025-03-26, the price of PECO Stock was $35.65.

The target price for PECO Stock according to analyst rating is 38.40, with the highest price target at 42.00 and the lowest at 35.00. Analysts have a Hold rating on PECO Stock overall.

The market cap of PECO is $4.5B.

Analysis and Insights

Valuation Metrics:

1. PE Ratio: PECO's price-to-earnings ratio is significantly high at 74.39, indicating that investors are paying a premium for each dollar of earnings, which may suggest overvaluation compared to industry peers.

2. EV/EBITDA: The enterprise value-to-EBITDA ratio of 41.85 further supports the overvaluation thesis, as it reflects a high valuation relative to the company's earnings before interest, taxes, depreciation, and amortization.

3. Price-to-Sales (PS) Ratio: At 7.75, this metric is elevated, suggesting that the stock price is high relative to its revenue, which could indicate overvaluation.

4. Price-to-Book (PB) Ratio: The PB ratio of 2.06, while not excessively high, adds to the overall valuation concern when considered alongside other metrics.

5. Dividend Yield: The dividend yield of 3.2% is relatively attractive but does not offset the high valuation multiples.

Technical Analysis:

The stock has recently broken below its 200-day moving average, a bearish signal that may indicate weakening investor sentiment or underlying fundamental challenges.

Analyst Sentiment:

Analysts have mixed opinions, with a consensus rating of Moderate Buy and a price target of $39.83, suggesting potential upside. However, the current valuation metrics and technical indicators raise concerns about the stock being overpriced.

Market Context:

The broader U.S. market appears overvalued, with multiple valuation models indicating high prices relative to earnings and economic factors, which may contribute to PECO's elevated valuation.

Conclusion:

Based on the high PE, EV/EBITDA, and PS ratios, along with the stock breaking below its 200-day moving average, PECO appears overvalued. While analyst sentiment is mixed, the current valuation metrics and technical indicators suggest caution.

Phillips Edison & Company, Inc. is a real estate investment trust (REIT). The Company's business is conducted through Phillips Edison Grocery Center Operating Partnership I, L.P. (the Operating Partnership). The Company owns and operates omni-channel grocery-anchored shopping centers. Additionally, it operates a third-party investment management business providing property management and advisory services to two unconsolidated institutional joint ventures and one private fund. Its portfolio primarily consists of neighborhood centers anchored by the #1 or #2 grocer tenants by sales within their respective formats by trade area. Its centers feature a mix of national and regional retailers providing goods and services throughout the United States. The Company manages approximately 301 shopping centers, including 281 wholly owned centers comprising 32.2 million square feet across 31 states and 20 shopping centers owned in one institutional joint venture.

Price Prediction for PECO Stock by 2030

Based on current trends and analyst expectations, PECO stock is projected to reach $50 by 2030, driven by its strong financial performance and growth prospects. The company's consistent dividend payments and strategic capital management are key factors supporting this outlook.

PECO has a total of 290 employees.