KeyBanc has increased its price target on EastGroup Properties (NYSE: EGP) to $205.00 from $200.00 and left its Overweight rating intact, citing recent operational momentum and financial positioning. The stock is trading at $190.49, roughly 0.99% below its 52-week high of $191.59, according to InvestingPro data.
The analyst action followed EastGroup’s fourth-quarter 2025 results, which KeyBanc said represented an improvement compared with the third quarter of 2025. For the last twelve months the REIT reported revenue of $721.34 million, a 12.97% increase year over year.
KeyBanc highlighted two primary drivers behind the target change: a "meaningful uptick in speculative development leasing" and "continued tightening" across EastGroup’s shallow-bay, Sunbelt-focused holdings. Those operational cues, the research note said, supported a modest increase to the firm’s valuation view while leaving room for further upside if the company sustains the recent trajectory.
The research team characterized management’s outlook as "favorable yet conservative," and indicated that additional upside could materialize if core fundamentals remain steady through 2026. KeyBanc also emphasized that EastGroup’s balance sheet "remains well-positioned to support future investment and ongoing development activity," and that an improving cost of capital could act as an additional tailwind for the company.
InvestingPro’s published metrics reinforce the firm-level take: EGP’s Financial Health Score is rated "GREAT" with an overall score of 3.11. At the same time, fair value assessments suggest the company appears slightly overvalued at current levels. Investors looking for more detail can consult EGP’s Pro Research Report, one of more than 1,400 such reports available for U.S. equities.
On the earnings front, EastGroup reported fourth-quarter 2025 earnings per share of $1.27, a modest miss versus the forecasted $1.30 and a 2.31% negative surprise relative to expectations. Revenue for the quarter, however, came in at $187.5 million, above the anticipated $185.29 million, underscoring the company’s ability to generate more top-line income than analysts had projected for the period.
Following the release, the company’s stock registered a positive market reaction, though the research note did not specify exact intraday price moves. KeyBanc and market participants continue to monitor the interplay between leasing momentum, development activity, balance-sheet flexibility, and capital-cost dynamics as they assess the trajectory for 2026.
Summary
KeyBanc raised its price target on EastGroup Properties to $205 from $200 and maintained an Overweight rating after Q4 2025 results showed improvement from the prior quarter. The firm cited stronger speculative leasing and portfolio tightening in the Sunbelt, a robust balance sheet, and the potential for a lower cost of capital to support further upside.
Key points
- Price target raised to $205 from $200; Overweight rating unchanged.
- Last twelve months revenue was $721.34 million, representing 12.97% growth.
- Q4 2025 EPS was $1.27, slightly below the $1.30 forecast, while quarterly revenue of $187.5 million beat the $185.29 million estimate.
Risks and uncertainties
- Near-term earnings risk: Q4 EPS came in slightly below forecasts, reflecting execution or timing variability that could affect near-term expectations.
- Valuation concerns: InvestingPro fair value assessments indicate the company appears slightly overvalued at current prices.
- Execution and market sensitivity: Continued leasing momentum and the benefit of a lower cost of capital are potential upside drivers, but their realization depends on steady fundamentals through 2026.
Investors and analysts will be watching leasing trends, development absorption, and capital costs closely as indicators for EastGroup’s performance in the coming quarters.