Baird has lifted its price target on EastGroup Properties (NYSE:EGP) to $203.00 from $200.00 and maintained an Outperform rating, according to the research note accompanying the update. The stock is trading at $192.15, just below its 52-week high of $193.14. InvestingPro data referenced by market services indicates that the $10.23B market capitalization REIT may be trading above its Fair Value assessment.
The firm pointed to an improving overall demand backdrop for industrial properties as a primary driver behind the revised outlook for EastGroup Properties. That view is consistent with the company reporting 12.97% revenue growth over the last twelve months, a metric Baird cited as supporting its constructive stance.
Baird expressed confidence that EastGroup’s leasing spreads will remain "relatively healthy over the intermediate term," calling those spreads a solid baseline for growth even in scenarios where further rent increases are limited. The research note also highlighted early evidence of improvement in leasing activity within EastGroup’s development portfolio during the fourth quarter - a development Baird said could position the company for accelerated growth over the next two years. The firm identified EastGroup Properties as a "top idea."
Separately, EastGroup released its fourth-quarter 2025 results, reporting earnings per share of $1.27, slightly below the $1.30 consensus forecast. The company did, however, top revenue expectations with $187.5 million versus the $185.29 million analysts had anticipated. Following that report, KeyBanc raised its price target on EastGroup Properties from $200.00 to $205.00 and kept an Overweight rating, attributing the change in part to improved leasing metrics revealed in the quarter.
These developments underline mixed signals in EastGroup’s near-term profile - robust top-line performance and indications of improving leasing against a modest EPS shortfall. For investors and market participants focused on industrial real estate and logistics-oriented property owners, leasing trends and development pipeline absorption will remain key metrics to watch.
Summary
Baird increased its price target on EastGroup Properties to $203 and kept an Outperform rating, citing stronger demand and healthy leasing spreads. The REIT reported 12.97% revenue growth year-over-year and showed early signs of improvement in development portfolio leasing in Q4. EastGroup’s Q4 2025 EPS was $1.27 versus a $1.30 forecast, while revenue was $187.5 million, beating the $185.29 million estimate. KeyBanc subsequently boosted its target to $205 and maintained an Overweight rating.
Key points
- Baird raised its price target on EastGroup Properties to $203 from $200 and kept an Outperform rating - a signal of confidence in industrial property demand.
- EastGroup posted 12.97% revenue growth over the last twelve months and reported Q4 revenue of $187.5 million, above forecasts.
- KeyBanc raised its price target to $205 after Q4 results, citing improved leasing metrics; the stock trades near its 52-week high of $193.14.
Risks and uncertainties
- Valuation risk - InvestingPro data suggests the $10.23B market cap REIT may be overvalued relative to its Fair Value assessment.
- Earnings variability - Q4 EPS of $1.27 narrowly missed the $1.30 forecast, indicating potential short-term earnings pressure.
- Development leasing uncertainty - improvements in the development portfolio were described as early evidence in Q4, leaving the persistence of that trend uncertain as it underpins projected accelerated growth.