Federal Realty Investment Trust Stock Can Still Grow By 40%

Federal Realty Investment Trust Stock Can Still Grow By 40%

Sign for the REIT Federal Realty Investment Trust on Santana Row in the Silicon Valley, San Jose, ... [+] California, December 14, 2019. (Photo by Smith Collection/Gado/Getty Images)



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We believe that Federal Realty Investment Trust stock (NYSE: FRT) has an upside potential of 40% in 1-1.5 years, once the consumer demand improves and the retail sales recovers to the pre-Covid level. FRT trades at $90 currently and it has lost 30% in value year-to-date. It traded at a pre-Covid high of $126 in February and is 28% below that level now. Also, FRT stock has gained 35% from the lows of $67 seen in March 2020, after the multi-billion dollar stimulus package announced by the U.S. government which has helped the stock market recover to a large extent. The stock is lagging the broader markets (S&P 500 is up about 65% since the March bottom), as investors are concerned about a drop in the rent collections rate of Federal Realty Investment Trust.

The company owns a portfolio of commercial properties near densely populated areas with affluent communities – where retail demand exceeds supply. Due to the Covid-19 pandemic and