Analyst Downgrades Signal Caution for SL Green Realty Shares

A wave of analyst revisions has placed significant pressure on the stock of New York office real estate specialist SL Green Realty. The latest adjustment from Mizuho Securities, which sharply reduced its price target, has further dampened market sentiment around the company.

The current reassessments stand in stark contrast to SL Green's recently reported operational strength. For the third quarter of 2025, released in mid-October, the company delivered results that exceeded expectations:
* Funds from Operations (FFO) reached $1.58 per share.
* Revenue came in at $244.8 million, significantly surpassing consensus estimates of approximately $157 million.
* GAAP earnings per share (EPS) were reported at $0.34.

Despite this strong recent performance, market focus has shifted decisively toward a less optimistic future outlook.

Disappointing 2026 Forecast Triggers Revisions

The primary catalyst for the numerous analyst corrections was management's disappointing guidance for fiscal year 2026, presented at its annual conference on December 5. SL Green Realty projected an FFO range of $4.40 to $4.70 per share for 2026. This fell notably short of market expectations, which had been around $5.13 per share. Furthermore, the company anticipates a net loss of up to $0.27 per share, or at best a minimal profit of $0.03.

Market experts interpret this forecast as indicative of a challenging "transition year" in 2026, where elevated tenant improvement costs and interest expenses are expected to weigh on results.

Should investors sell immediately? Or is it worth buying SL Green Realty?

Mizuho Leads Series of Price Target Cuts

In a significant move on Friday, December 12, analysts at Mizuho Securities slashed their price target for SL Green Realty from $67.00 to $47.00—a reduction of nearly 30%. They maintained a "Neutral" rating on the equity. This action was part of a broader reassessment by several research firms:
* On December 9, Deutsche Bank lowered its target from $60.00 to $46.00.
* Truist Securities adjusted its target downward from $54.00 to $47.00 on December 8.
* BMO Capital made a more modest revision, moving its target from $63.00 to $60.00.

The share price, currently trading in the mid-$44 range, is now approaching these newly established, lower analyst targets.

Dividend Payout Continues Amid Uncertainty

Notwithstanding the stock price volatility and cautious forward-looking statements, the company continues its shareholder distributions. A monthly dividend of $0.2575 per share is scheduled for payment on Monday, December 15, to shareholders of record as of November 28.

The coming trading sessions will test whether the stock can maintain its support level near $44 as the market fully digests the implications of the widespread analyst downgrades.