Analyst Ratings February 18, 2026

RBC lifts EastGroup Properties price target after constructive leasing update

Analyst raises target to $195 while keeping a neutral Sector Perform rating following Q4 2025 results and robust development leasing

By Jordan Park EGP
RBC lifts EastGroup Properties price target after constructive leasing update
EGP

RBC Capital increased its 12-month price target for EastGroup Properties to $195 from $183 and maintained a Sector Perform rating after the REIT’s fourth-quarter 2025 report. The move reflects a brighter leasing backdrop and disclosed development leasing activity, even as RBC trimmed a longer-term development-starts forecast for 2025. Other brokerages also nudged targets higher after mixed quarterly results.

Key Points

  • RBC Capital raised its price target on EastGroup Properties to $195 from $183 and retained a Sector Perform rating; the new target sits just above the stock price of $192.83, near its 52-week high of $193.69.
  • The upgrade follows EastGroup’s fourth-quarter 2025 results, which showed continued profitability for the $10.27 billion market cap REIT and a constructive fundamental outlook supported by disclosed development leasing activity.
  • Additional broker responses included KeyBanc raising its target to $205 with an Overweight rating and Baird increasing its target to $203 while keeping an Outperform rating, reflecting a broadly optimistic analyst sentiment on industrial property demand.

RBC Capital raised its price target on EastGroup Properties (NYSE: EGP) to $195 from $183 on Tuesday, while holding the stock at a Sector Perform rating. The updated target sits marginally above EGP’s most recent trade around $192.83, with the share price trading close to its 52-week high of $193.69.

The firm made the adjustment after EastGroup released fourth-quarter 2025 results. The company, a real estate investment trust with a market capitalization of $10.27 billion, reported a solid quarter and continued its run of profitability.

RBC highlighted a constructive fundamental outlook for the quarter and pointed to strong development leasing activity that EastGroup had previously disclosed in December 2025. The research note said leasing prospects remain favorable, and that outlook underpinned the higher price target.

At the same time, RBC slightly lowered its 2027 forecast, citing fewer development starts in 2025. The firm did not change its Sector Perform designation despite raising the target, signaling a cautious stance balanced with recognition of improving leasing conditions.

EastGroup’s fourth-quarter financials included an EPS of $1.27, which was modestly below the $1.30 analysts had expected. Revenues, however, outpaced projections, coming in at $187.5 million versus an anticipated $185.29 million.

Other research firms also reacted to the quarter with upward target revisions. KeyBanc raised its price objective for EastGroup to $205.00 from $200.00 and kept an Overweight rating following the fourth-quarter results, noting improvements compared with the third quarter of 2025. Baird likewise lifted its target to $203.00 from $200.00 and maintained an Outperform rating, citing an improving demand backdrop for industrial properties.

The cluster of price-target increases and maintained positive ratings from KeyBanc and Baird, coupled with RBC’s revised outlook, collectively point to an optimistic analyst mood about EastGroup’s leasing environment and near-term prospects. At the same time, RBC’s retention of a Sector Perform rating and its trimmed 2027 estimate reflect some caution tied specifically to development-start pacing.


Note: The article presents analyst updates and company results as reported for EastGroup Properties’ fourth-quarter 2025 period.

Risks

  • Earnings volatility - EastGroup’s Q4 EPS of $1.27 missed the $1.30 forecast, indicating potential near-term earnings variability that could affect investor sentiment and valuation - impacts the REIT and equity markets.
  • Development pacing uncertainty - RBC trimmed its 2027 estimate due to fewer development starts in 2025, introducing execution and timing risk around growth plans and future supply - impacts the industrial real estate sector and construction-related markets.
  • Market sensitivity to leasing trends - While leasing activity was cited as strong, changes in leasing demand or macroeconomic conditions could reverse the favorable backdrop that supported recent price-target increases - impacts industrial property investors and broader commercial real estate.

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