
Paramount Group (PGRE) Stock Forecast & Price Target
Paramount Group (PGRE) Analyst Ratings
Bulls say
Paramount Group Inc. has seen a substantial share price increase of 54.6% since announcing a strategic review aimed at maximizing shareholder value, significantly outperforming the broader real estate index by 5,290 basis points. Expectations for above-average net effective rent growth in New York City and San Francisco are driven by increasing tenant demand, which may lead to higher occupancy levels and more rapid lease-ups for upcoming expirations. Additionally, tenants' preference for high-quality office assets, such as those in Paramount's portfolio, further supports a positive outlook on the company's financial prospects.
Bears say
Paramount Group Inc. is facing a significant decline in total portfolio occupancy, which has decreased by 1,670 basis points since the third quarter of 2020, contributing to a 68% decline in its share price from pre-pandemic levels. Additionally, there are considerable risks associated with the demand from TAMI tenants and potential slower retail sales growth, which adversely affect both demand and rental income for the company's vacant retail spaces. The rising interest rates are expected to increase terminal cap rates, ultimately leading to lower net asset value estimates and heightening the company’s financial vulnerability.
This aggregate rating is based on analysts' research of Paramount Group and is not a guaranteed prediction by Public.com or investment advice.
Paramount Group (PGRE) Analyst Forecast & Price Prediction
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