SL Green Realty stock price target lowered to $62 by Piper Sandler

Investing.com - Piper Sandler lowered its price target on SL Green Realty (NYSE:SLG) to $62.00 from $67.00 on Wednesday, while maintaining an Overweight rating on the stock. SL Green currently trades at $47.02, representing significant potential upside to the new target despite falling over 19% in the past six months, according to InvestingPro data.

The research firm highlighted SL Green’s progress in signing 7.3 million square feet of space since 2023, with 2.8 million square feet representing new deals. Piper Sandler noted that the company’s upcoming December 5 investor day will likely focus on conversion rates between existing occupancy and leased rates as the portfolio returns to pre-pandemic levels. InvestingPro analysis reveals that despite recent leasing progress, analysts expect net income to drop this year, with the company not projected to be profitable.

Piper Sandler addressed debates over releasing spreads, pointing out that SL Green’s comparison method—contrasting final year fully escalated rents with recoveries to first-year base rent—makes slight negative comparisons potentially misleading. Despite profitability challenges, SL Green maintains a 6.57% dividend yield and has continued dividend payments for 29 consecutive years.

The firm expressed concerns about potential tax increases in New York, noting that Governor Hochul might agree to tax hikes to prevent a primary challenge. Piper Sandler warned that such increases could risk taxpayer flight, potentially affecting New York City’s economic recovery.

Despite these tax concerns, Piper Sandler expressed confidence that Midtown Manhattan’s strength would continue, supporting its maintained Overweight rating on SL Green Realty despite the reduced price target. With a market cap of $3.57 billion and a high EV/EBITDA ratio of 47.83, InvestingPro rates SL Green’s overall financial health as WEAK. For investors seeking deeper insights, InvestingPro offers additional ProTips and a comprehensive Pro Research Report that provides expert analysis on SL Green among 1,400+ US equities.

In other recent news, SL Green Realty Corp. reported its third-quarter 2025 earnings, delivering a strong performance that exceeded Wall Street expectations. The company achieved an earnings per share (EPS) of $0.34, which significantly outperformed the anticipated loss of $0.34. SL Green’s revenue also surpassed projections, reaching $244.82 million compared to the forecasted $156.92 million, marking a surprise of 56.02%. Piper Sandler reiterated an Overweight rating with a $72.00 price target, expressing confidence in SL Green’s future potential, particularly with New York City’s office market rebound. Meanwhile, Scotiabank adjusted its price target to $66.00, citing higher interest costs and lower investment income. Truist Securities lowered its price target to $54.00 due to concerns over declining funds from operations estimates. Despite these adjustments, Truist maintained a Hold rating, while Scotiabank retained a Sector Outperform rating. These developments highlight varying analyst perspectives on SL Green’s financial outlook.

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