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Taubman Centers, Inc.

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Shares of Taubman Centers have underperformed its industry, year to date. Also, the stock has seen the Zacks Consensus Estimate for third-quarter 2017 funds from operations (FFO) per share being revised downward in two months’ time. Notably, with a rapid shift in customers’ shopping preferences and growing online purchases, mall traffic continues to suffer. These have made retailers reconsider their footprint and eventually opt for store closures. In addition, retailers that are not being able to cope with competition are filing bankruptcies. Also, hike in interest rates and unfavorable foreign currency movements increase its risks. Nevertheless, the company’s focus on implementing cost-saving initiatives might support FFO, going forward.


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