Analysts Weigh In on Vornado's Q1 Results

Piper Sandler raised its price target to $40 while Stifel cut its estimate to $35

The shares of Vornado Realty Trust (NYSE:VNO) are down 5.2% to trade at $36.81 as even more analysts weigh in on its May 4, first-quarter report in which the real estate investment trust (REIT) posted an earnings miss, but revenue that exceeded Wall Street's estimates. Specifically, Stifel cut its price target to $35 from $37 and downgraded the stock to "hold" from "sell," while Piper Sandler raised its price target to $40 from $35.

Coming into today, the majority of analysts were already cautious on the stock, with 10 of 12 in coverage sporting a lukewarm "hold" rating. Meanwhile, the 12-month consensus target price of $49 is a 33.1% premium to current levels.

Since an 11-year low of $27.64 on March 23, VNO has been struggling to rebound, with pressure at the $45 region turning away its latest two attempts. Plus, today's drop puts the security back below its 40-day moving average -- a trendline that served as support during the past couple weeks.

Short sellers were piling on ahead of earnings, too. Short interest rose 22% in the last two reporting periods. There's still plenty of room for these bears to drive VNO even lower, though. The 6.82 milliion shares sold short represent a slim 3.9% of the stock's available float, or less than three days at its average pace of trading.