Monday, Credit Suisse initiated coverage of Taubman Centers Inc. (TCO) stock with a Neutral rating and a price target of $36.
Analyst Rosivach noted that there are many reasons to appreciate TCO, including its strong platform of high productivity malls, average specialty sales of $497 a foot, and its growth strategy of developing in Asia. The analyst believes the company has built a brand with luxury retailers as an irreplaceable landlord.
However, the analyst is concerned about near-term headwinds, namely filling temporary tenant space after Christmas, a weakening environment for lease signings in 2010, and lower lease termination fees next year. The company has highlighted these among other negative headwinds, and a few positive ones, that the analyst believes will temper enthusiasm for the stock until 2011.
Currently, TCO is up $0.27 or 0.77% and trading at $35.27.
For comments and feedback: editorial@rttnews.com