Phillips Edison & Company Upgraded to “Hold” by Wall Street Zen

Equities researchers at Wall Street Zen have upgraded Phillips Edison & Company, Inc. (NASDAQ:PECO) from a “sell” rating to a “hold” rating, according to a report issued on October 21, 2023. This revision follows a series of evaluations from various financial institutions regarding the company’s stock performance.

On the same day, Wells Fargo & Company initiated coverage on Phillips Edison, assigning it an “equal weight” rating with a target price of $36.00. Earlier, on October 6, 2023, Barclays had raised its target price for PECO from $36.00 to $38.00, maintaining an “equal weight” rating. Additionally, Weiss Ratings reaffirmed a “hold (c+)” rating on October 8, 2023, while Mizuho adjusted its price target from $38.00 to $37.00 on July 17, 2023, with an “outperform” rating. Furthermore, LADENBURG THALM/SH SH initiated coverage on September 9, 2023, issuing a “buy” rating and a target price of $40.00.

Current market data reveals that three investment analysts rate the stock as a “buy,” while five analysts recommend holding the stock. According to data from MarketBeat.com, Phillips Edison & Company holds an average rating of “hold” with a target price of $38.86.

Trading activity reflects a modest increase, with PECO opening at $34.90 on Friday, marking a 1.1% rise. The company boasts a market capitalization of $4.39 billion, a price-to-earnings ratio of 52.88, and a PEG ratio of 1.51. Over the past year, the stock has fluctuated between a low of $32.40 and a high of $40.12.

In its most recent earnings report, released on October 23, 2023, Phillips Edison reported earnings of $0.20 per share, falling short of analysts’ expectations of $0.64 by $0.44. The company recorded revenue of $182.67 million for the quarter, surpassing the consensus estimate of $177.19 million. The firm reported a return on equity of 3.14% and a net margin of 11.51%. Notably, revenue increased by 10.4% compared to the same quarter last year, when it posted earnings of $0.62 per share. Looking ahead, the company has set its fiscal year 2025 guidance at $0.620-0.650 earnings per share, with analysts forecasting $2.55 earnings per share for the current year.

Recent movements among institutional investors indicate a growing interest in Phillips Edison. Assetmark Inc. purchased a new position during the second quarter valued at approximately $28,000. Jones Financial Companies Lllp significantly increased its stake by 2,590.0% in the third quarter, now owning 1,076 shares valued at about $37,000. Similarly, Hantz Financial Services Inc. raised its position by 418.1% during the same period, owning 1,119 shares worth $38,000. Quarry LP expanded its holdings by an astounding 21,362.5% in the first quarter, owning 1,717 shares valued at $63,000. Furthermore, EverSource Wealth Advisors LLC increased its position by 49.7% during the second quarter, now owning 2,604 shares valued at $91,000. Institutional investors currently own 80.70% of Phillips Edison’s stock.

Founded as a real estate investment trust, Phillips Edison & Company focuses on the ownership and management of shopping centers. Its portfolio includes well-occupied, grocery-anchored neighborhood and community shopping centers featuring a mix of national, regional, and local retailers that provide essential goods and services.