Shares had a quick tumble yesterday, eventually closing down 2.25% after a report saying struggling tenant Shopko may be put up for sale. Challenges associated with Shopko have been "more than priced in," says Deutsche's Vin Chao.
Spirit (NYSE:SRC) did fall quickly yesterday afternoon, but more interesting to Chao was the quick rebound into the close, suggesting smart money is ready to buy any Shopko-related dip. He'll be on the lookout for any sell-side downgrades today.
Meanwhile, Mizuho's Haendel St. Juste reminds that Spirit is spinning off Shopko, and the remaining company faces more limited risks.
Both analysts continue to rate the stock a Buy.
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