Samplings of what analysts are saying about Kimco Realty Corporation.
A.G. Edwards & Sons
Rating: Buy/Aggressive (12/6/06)
Target Price: $53
“We remain confident in the overall retail environment and believe KIM is poised to benefit with its in-place portfolio of retail properties, as well as from the numerous acquisitions made throughout 2006. When combing KIM’s solid retail position, a strong balance sheet offering freedom to grow, fee program, and a stellar management team, we believe KIM can obtain FFO per share growth of 10 percent or more in upcoming years.”
Wachovia
Rating: Market Perform (10/30/06)
Target Price: $44
Kimco is focused on aggressively growing its Assets Under Management. Despite the guidance from their recent analyst/investor day that implies $4BB/year in average annual growth, their 2007 growth forecast is based upon just $2BB growth. This could reflect the conservatism we’ve come to expect from Kimco and most of the leaders in the real estate sector, but this is not typical of “promise what you deliver, deliver what you promise” guidance we regularly see among other S&P 500 companies. This could be viewed as a reduction in forward guidance by some constituencies.
Bear, Sterns & Co.
Rating: Market Weight (10/30/06)
Target Price: $48
Over the past 12 months, Kimco’s portfolio increased 9.5 percent or 10.3 million square feet on a net basis, to reach 118.8 million sq. ft. In addition, 25.9 percent of revenue was attributed to management and other fee income (including mortgage financing) as well as from other real estate investments, up from 19.3 percent a year ago.
