Citi analyst Seth Bergey has revised the price target for Empire State Realty (ESRT, Financial), reducing it from $10 to $7.50. The adjustment reflects a more cautious outlook, with the new target accounting for a discount to the spot net asset value (NAV) and applying a 9x multiple to the projected 2025 funds from operations (FFO).
The decision to lower the multiple comes amid concerns about the broader office sector's vulnerability to ongoing economic uncertainties. Previously, the firm had used a 12x multiple as part of its valuation approach. However, the updated estimate signals a more conservative stance, given the current market conditions affecting office real estate. The rating for Empire State Realty remains Neutral.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Empire State Realty Trust Inc (ESRT, Financial) is $10.40 with a high estimate of $11.00 and a low estimate of $10.00. The average target implies an upside of 48.47% from the current price of $7.01. More detailed estimate data can be found on the Empire State Realty Trust Inc (ESRT) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Empire State Realty Trust Inc's (ESRT, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Empire State Realty Trust Inc (ESRT, Financial) in one year is $9.57, suggesting a upside of 36.62% from the current price of $7.005. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Empire State Realty Trust Inc (ESRT) Summary page.
