ESRT Intrinsic Value Calculation – Wells Fargo Downgrades Empire State Realty Trust to Underweight, Lowers Price Target to $6 for 2023
March 18, 2023
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Wells Fargo has made the decision to downgrade Empire State Realty ($NYSE:ESRT) Trust (ESRT) to an Underweight rating and to lower its Price Target to $6 for 2023. ESRT’s portfolio consists primarily of office and retail space in New York City’s iconic Empire State Building and other properties in the Hudson Yards and midtown Manhattan area. With the negative news of the downgrade and lowered price target, investors are concerned about the future of ESRT’s properties in light of the economic uncertainty brought on by the pandemic.
This is yet another reminder of the potential volatility of real estate investments in an uncertain market. As such, investors should approach any potential investments in ESRT with caution.
Share Price
Despite the negative news, media sentiment towards Empire State Realty Trust has remained largely positive. The negative news from Wells Fargo caused the EMPIRE STATE REALTY TRUST stock to open at $6.5 and close at $6.1, a decrease of 8.6% from the last closing price of 6.6. This drop in stock price is indicative of the potential scrutiny shareholders may face in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for ESRT. More…
| Total Revenues | Net Income | Net Margin |
| 727.04 | 36.44 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for ESRT. More…
| Operations | Investing | Financing |
| 211.17 | -230.89 | -140.24 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for ESRT. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.16k | 2.48k | 5.92 |
Key Ratios Snapshot
Some of the financial key ratios for ESRT are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 17.5% |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – ESRT Intrinsic Value Calculation
At GoodWhale, we recently conducted an analysis on EMPIRE STATE REALTY TRUST’s wellbeing. Our proprietary Valuation Line has determined the fair value of EMPIRE STATE REALTY TRUST share to be around $6.6. Currently, this stock is trading at $6.1, which is a fair price but slightly undervalued by 7.0%. More…
Peers
ESRT’s portfolio includes the Empire State Building, the world’s most famous office building. The company also owns and manages a retail portfolio that comprises some of New York’s most iconic and historic shopping destinations. ESRT’s competitors include SL Green Realty Corp, Vornado Realty Trust, Hudson Pacific Properties Inc.
– SL Green Realty Corp ($NYSE:SLG)
SL Green Realty Corp is a real estate investment trust that focuses on acquiring, managing, and developing office properties in the United States. As of December 31, 2020, the company owned interests in 108 Manhattan buildings totaling 54.4 million square feet.
– Vornado Realty Trust ($NYSE:VNO)
Vornado Realty Trust is a publicly traded real estate investment trust (REIT) that owns, manages and develops commercial real estate, primarily in the United States. The company’s portfolio includes office buildings, retail space, hotels and other properties. Vornado’s market capitalization is $4.44 billion as of 2022. The company’s properties are located in major markets across the United States, including New York City, Washington, D.C., Chicago and San Francisco.
– Hudson Pacific Properties Inc ($NYSE:HPP)
Hudson Pacific Properties Inc is a real estate investment trust that focuses on acquiring, developing, and operating office properties in the United States. As of December 31, 2020, the company owned and operated approximately 39 million square feet of office space. Hudson Pacific Properties Inc is headquartered in Los Angeles, California.
Summary
Empire State Realty Trust (ESRT) has recently been downgraded to an Underweight rating by Wells Fargo and their price target for 2023 has been lowered to $6 per share. The current media sentiment surrounding ESRT is mostly positive, but this downgrade has caused the stock price to drop. Investors should pay attention to the downside risk indicated by this downgrade, as well as analyze the market conditions and research the company before investing. It’s also important to remember that stock prices can fluctuate significantly and past performance is not indicative of future performance.
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