Update shared on 27 Oct 2025
Fair value Increased 0.34%The consensus analyst price target for Vornado Realty Trust has increased slightly to $39.80 from $39.67. This reflects analysts' expectations for improved earnings growth and stronger market fundamentals.
Analyst Commentary
Recent street research reveals a mix of optimism and caution among analysts regarding Vornado Realty Trust's near-term outlook. Their insights highlight both growth catalysts and lingering challenges for the company.
Bullish Takeaways- Bullish analysts increased price targets, driven by raised earnings forecasts and forward-looking growth models. This suggests confidence in improved financial performance through 2027.
- Strength in New York’s office market and a healthier transaction environment are expected to support better share performance and offer a more balanced risk/reward at current levels.
- Ongoing leasing improvement, lower interest rates, and manageable lease expirations are cited as factors that could lead to rising portfolio occupancy and stronger rent spreads.
- Analysts note that the inclusion of future estimates in valuation frameworks reflects a favorable long-term outlook for the company's ability to drive earnings growth.
- Some bearish analysts reduced price targets after updating models with recent earnings and quarter-end results. This indicates continued uncertainty in the operating environment.
- There are concerns about downward trends in cash flow and the company’s premium valuation compared to earnings growth.
- Although leasing activity shows signs of improvement, analysts remain cautious about near-term risks such as lease expirations and market volatility.
- Current ratings remain mixed and range from Neutral to Hold. This reflects a measured approach to forecasted recovery and caution regarding execution risks.
What's in the News
- Vornado Realty Trust participated in the second round of bidding to acquire Paramount Group, joining other major real estate players such as SL Green, Empire State Realty, Blackstone, and Rithm Capital (TheRealDeal, Wall Street Journal).
- Rithm Capital is reported to be nearing a deal to acquire Paramount Group, a process in which Vornado has been an active bidder (Wall Street Journal).
- Vornado completed the acquisition of the 623 Fifth Avenue office condominium, a 36-story, 382,500 square foot building above Saks Fifth Avenue. The company has plans to reposition and redevelop it into a premier boutique office asset.
- Verizon announced it will relocate its New York headquarters to Vornado's reimagined PENN 2 tower in the PENN DISTRICT campus. Verizon has signed a 19-year lease for nearly 200,000 square feet.
Valuation Changes
- Consensus Analyst Price Target has risen slightly, from $39.67 to $39.80.
- Discount Rate has edged lower, moving from 8.40% to approximately 8.39%.
- Revenue Growth expectations remain stable at roughly 1.98%.
- Net Profit Margin has increased, rising from 1.24% to 1.28%.
- Future P/E has decreased, falling from 399.32x to 387.05x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.