Piper Sandler has revised its price target for Vornado Realty Trust (VNO, Financial), reducing it from $44 to $38 while maintaining a Neutral rating on the stock. This adjustment comes despite the recent optimism in the market driven by positive tariff news, as outlined in this year's Chairman’s letter.
The letter highlights two crucial issues for New York City’s sustained growth: managing the high costs associated with real estate development and addressing the fiscal challenges faced by the state. These factors are particularly relevant for Vornado, which has emerged in a stronger position compared to the early days of the pandemic.
Currently, the real estate market is witnessing a divergence, with investors showing a preference for well-financed premium office buildings over older, debt-heavy structures. Vornado’s improved standing reflects its focus on premium properties, positioning it favorably in the evolving market landscape.
