Tanger (SKT): Assessing Valuation After Recent Share Price Pullback
Tanger (SKT) has quietly slipped about 7% over the past month, even as its long term track record remains strong, so the stock now looks interesting for income focused investors watching retail real estate.
See our latest analysis for Tanger.
That pullback sits against a year to date share price return of around negative mid single digits and a one year total shareholder return of negative high single digits. However, the three and five year total shareholder returns remain very strong, which suggests recent momentum has cooled rather than fully reversed the longer term recovery story.
If Tanger has you rethinking where income and steady growth might come from next, it could be worth exploring other real estate plays or fast growing stocks with high insider ownership for fresh ideas.
With shares now trading at a discount to both analysts’ targets and some intrinsic value estimates, the key question is whether Tanger is genuinely undervalued or if the market already sees and is pricing in its future growth potential.
Most Popular Narrative Narrative: 12.4% Undervalued
With Tanger last closing at $32.16 against a narrative fair value in the high $30s, the valuation hinges on a steady but improving growth profile.
The analysts have a consensus price target of $35.545 for Tanger based on their expectations of its future earnings growth, profit margins and other risk factors. In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be $617.1 million, earnings will come to $132.6 million, and it would be trading on a PE ratio of 42.1x, assuming you use a discount rate of 7.9%.
Want to see how modest revenue growth, expanding margins and a rich future earnings multiple can still justify an upside to today’s price? The full narrative walks through the exact financial bridge behind that valuation call.
Result: Fair Value of $36.73 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, sustained e commerce shifts or major tenant closures could sap outlet traffic and rents, which could undermine assumptions around steady occupancy, margin expansion and earnings growth.
Find out about the key risks to this Tanger narrative.
Build Your Own Tanger Narrative
If that framework does not fully match your own view or you prefer hands on analysis, you can quickly build a custom narrative in minutes: Do it your way.
A great starting point for your Tanger research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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