The Forecast Just Changed on Retail Properties of America Inc. (RPAI)

The Forecast Just Changed on Retail Properties of America Inc. (RPAI)


Many stocks have been testing new highs in 2020, and one of the most notable is Retail Properties of America Inc. (RPAI). Currently, RPAI is trading at $8.16 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $8.00.

To add more color to this target, the company’s high over the last year is $14.30 and the low is $2.87. Over the last 52 weeks, RPAI is down -42.94% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, RPAI reported a profit of $34.06 million. Retail Properties of America Inc. also saw revenues increase to $118.69 million. In addition, RPAI has free cash flow of -$34.09 million as of 03-2020 The company’s EBITDA came in at $75.19 million which compares well with its peers.

RPAI booked profit margins of 6.50%, its Return on Equity (ROE) is 1.90%, and its Return on Assets is 0.80%. All told, it is clear that, RPAI needs to be on your watchlist.

About Retail Properties of America Inc.

If readers are unfamiliar, Retail Properties of America, Inc. is a REIT that owns and operates high quality, strategically located open-air shopping centers, including properties with a mixed-use component. As of March 31, 2020, the Company owned 102 retail operating properties in the United States representing 20.0 million square feet. The Company is publicly traded on the New York Stock Exchange under the ticker symbol RPAI.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. RPAI has a short ratio of 0.88 and outstanding shares of 213.22M.

Company Outlook

RPAI has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.45 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.15. Investors should also keep an eye on sector updates as RPAI has historically followed its peers on positive news.

All told, Retail Properties of America Inc. RPAI has strung together solid data and demonstrated underlying fundamentals. At its current valuation, RPAI represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Retail Properties of America Inc. RPAI is now commanding a market cap of 1.74B and a float of 212.47M. RPAI is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of RPAI stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in RPAI, either long or short, and we have not been compensated for this article.