J.P. Morgan Reiterates a Buy Rating on Vornado Realty

By Carrie Williams

In a report released yesterday, Anthony Paolone from J.P. Morgan reiterated a Buy rating on Vornado Realty (NYSE: VNO), with a price target of $115. The company’s shares opened today at $98.31.

Paolone said:

“We updated our VNO model and are lowering our 2016 and 2017 FFO estimates to account for the 3Q miss and a lower GAAP NOI run-rate coming out of the quarter. Note that our estimates do not strip out VNO’s planned DC spin-merger with JBG, which is expected to close in 2Q’17; we chose this approach so as to keep earnings multiples relevant until shares of the spin are distributed.”

According to TipRanks.com, Paolone is a 5-star analyst with an average return of 9.3% and a 68.8% success rate. Paolone covers the Financial sector, focusing on stocks such as Jones Lang Lasalle Inc., Office Properties Trust, and Apartment Inv. & Mgmt.

Vornado Realty has an analyst consensus of Moderate Buy, with a price target consensus of $115.

The company has a one year high of $108.69 and a one year low of $78.91. Currently, Vornado Realty has an average volume of 928.3K.

Based on the recent corporate insider activity of 7 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of VNO in relation to earlier this year. Most recently, in July 2016, Mitchell Schear, the President – VNO of VNO bought 1,220 shares for a total of $99,820.

Vornado Realty Trust is a real estate investment trust and conducts its business through Vornado Realty L.P., a Delaware limited partnership. The company owns office, retail, merchandise mart properties and other real estate and related investments. Its office properties include various building office complexes and Bank of America Center in San Francisco. The trust’s retail properties include shopping centers, regional malls single tenant retail assets. The trust’s other real estate and related investments include marketable securities and mezzanine loans or real estate. It operates through the following business segments: New York Office Properties, Washington, DC Office Properties, Retail Properties, Toys and others. The company was founded by Steve Roth in 1982 and is headquartered in New York, NY.