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First Industrial Realty Trust (NYSE:FR) rose after Wolfe Research raised its recommendation on the industrial REIT, considering an improvement potential in supply, estimated earnings growth, favorable valuation and lack of risks.
FR was trading 1.66% higher Tuesday pre-market at $53.89.
“Supply is currently challenging, but clearly has a path to improvement,” analyst Andrew Rosivach said in a research note.
The company is estimated to produce earnings growth of ~9% from 2024-2026. For valuation, FR trades at the lowest FFO multiple in the research firm’s traditional industrial coverage, the note said.
“FR’s greatest challenge (supply) has a clear line of sight to recovery, while lacking some of the development and accounting risks of other industrial REITs,” Wolfe Research noted.
The research firm upgraded the industrial REIT to Outperform from Peer Perform, with a YE25 price target of $64.
The stock is trading ~8% above its 200-day simple moving average.
The rating aligns with the average sell-side analysts and Seeking Alpha authors rating of Buy. Meanwhile, the Quant Rating system gives the stock a Hold rating.
