Five Point Initiated at Outperform by RBC

Five Point Holdings received an outperform investment rating from RBC Capital Markets, which initiated coverage of the developer of mixed-use, planned communities in coastal California with a price target of $19 per share. The price target compares with a Friday closing price of $15.70. The stock went public in mid-May at an initial-public-offering price of $14 per share.

In a note to clients, RBC described Five Point Holdings’ stock as “an ideal holding for long-term investors with a real-estate focus looking to benefit from the potential appreciation associated with the development of three mixed-use, master planned communities located in coastal California.” The firm added: “A successful development strategy, seasoned management, a premier land position, abundant optionality, and a heavily discounted valuation relative to the [net asset value] support our outperform recommendation.”

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