Tanger Outlets Downgraded to “Hold” at Jefferies (SKT)

Jefferies announced on Wednesday that it has cut its rating on Tanger Factory Outlet Centers Inc. (SKT).

The firm has downgraded SKT from “Buy” to “Hold,” and has lowered the company’s price target from $40 to $35. This price target suggests an 8% upside from the stock’s current price of $32.22.

Analyst Omotayo Okusanya commented: “We expect near-term headwinds for the mall and outlet mall segment as tenant sales growth appears to be slowing.”

“At SKT, development yields on two projects have also been reduced. Further, rising interest rates negatively impact our DDM-derived PT. Our lowered PT of $35 represents a 10% total return over the next-twelve-months (NTM); we are downgrading to Hold,” added the analyst.

Tanger Factory Outlet shares were mostly flat during pre-market trading Wednesday. The stock is up more than 5% YTD.